The lack of affordable childcare in the UK won’t be news to anyone. This month, however, it has made news headlines once again when the first stage in the government’s plans towards making this more affordable was rolled out.
From 1 January, parents have been able to apply for a code to access funding for 15 hours of childcare for two-year-olds from 1 April. This followed the announcement of an extension of funding for free childcare in last year’s Spring Budget. The move, which means working parents of children aged nine months upwards will be entitled to 30 hours of free childcare from September 2025, has the potential to enable more individuals to enter, or return to, the workforce, thus increasing the talent pools available to employers.
Yet, according to research by Pregnant Then Screwed, published this month, just 11% of the parents surveyed have been able to access the government’s service to obtain a code, while only 55% have been able to find a childcare provider that will accept the extended funded hours provision.
The situation is further compounded by the availability of childcare places in relation to demand. Research by Coram, published in March last year, for example, found 48% of local areas across the UK reported enough availability of childcare for parents working full time, down 11% on the previous year. While the government is taking steps to overcome this, questions have been raised over whether this is achievable ahead of next September’s increase in free funded hours.
As it currently stands, therefore, significant numbers of parents among the working age population currently find they are facing a barrier to work, either due to a lack of available childcare or being effectively priced out of the workforce by its cost. This means employers could potentially be losing out on valuable skills and experience. In fact, according to research published by Pregnant Then Screwed in September 2023, 62% of the 11,811 parents of children under the age of five who were surveyed said either they or their partner has reduced the hours they work due to childcare costs or availability. More than three-quarters (77%) of respondents with a household income of less than £50,000 per annum, meanwhile, has reduced their hours in order to make childcare work.
While the onus is still very much on the government to rectify the state of childcare provision in the UK, if this does not transpire, will the repercussions, ultimately, mean employers will need to take action if they are to secure the talent they require for business success? With many organisations already stretched amid rising costs, is this even an option? Or will some cohorts among the working age population remain trapped out of employment due to a lack of affordable childcare?
Debbie Lovewell-Tuck
Editor
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