Free childcare plan in chaos as funding for Tories’ key pledge unravels

Maya Oppenheim and Adam Forrest, The Independent

Jeremy Hunt is under fire as it emerged that his key Budget promise to expand free childcare in 2024 is fast unravelling amid “chaos” over funding arrangements. The chancellor had announced a major extension of free care for this spring in a bid to win back voters — but experts say the sector has not been given enough cash or support to deliver his pledge. With the Tories hoping for a boost in the run-up to this year’s general election, eligible working parents of two-year-olds have been told they can claim 15 hours a week of free childcare from 1 April. However, council bosses have warned that the funding will not be in place for nurseries by then — with cash-strapped providers facing a “huge crisis” over the number of children places they can offer.

Experts say many families could miss out at the last minute — with some parents telling The Independent they have already been told by their local nursery they cannot offer Hunt’s flagship policy. Critics laid the blame squarely on Rishi Sunak’s government — saying Hunt and fellow ministers had not backed up their “ill-thought-out” policy with enough financial support. Labour shadow children’s minister Helen Hayes said the Tories’ childcare offer to voters in the election year has fallen at the first hurdle. The frontbencher said the government had squeezed the timeline for funding confirmation, adding: “By failing to plan for delivery, their promises on childcare have been set up to fail.” The Liberal Democrats said there was a huge crisis looming – with the prospect of some nurseries collapsing — unless the government comes forward with proper funding guarantees.

The party’s education spokesperson Munira Wilson said: “How does this government expect to roll out expansion of childcare when the amount they invest in childcare services is a fraction of what’s needed?” The Department for Education (DfE) says local authorities have until the end of March to confirm how much they will pay nurseries for extra places. But childcare under the programme is set to begin on 1 April — meaning many parents may not receive confirmation about a place until weeks after they want to start. One expert said parents may even be forced to abandon their returns to work at the last minute if do not get the free childcare they expect. Neil Leitch, chief executive of the Early Years Alliance, said: “This chaos is the fault of the government. The government introduced this new childcare system, they are responsible for funding it. It is an ill-thought-out policy.”

Louise Gittins, chair of the Local Government Association’s children and young people board, said: “Unfortunately, information for local authorities and providers has only recently been made available by central government, and this means they are having to work within a challenging timeframe to ensure arrangements are in place to expand before the start of the April rollout.”

A mother-of-one living in Northamptonshire told The Independent her local nursery has just warned parents they will not be offering Hunt’s flagship policy and will stop providing the funded places for three-year-olds they previously offered. The Independent recently revealed thousands of nurseries had been forced to close their doors amid staff shortages and a lack of funding, sparking warnings that Hunt’s Budget pledge to offer 30 hours of free childcare for under-fives from 2025 was doomed to failure. The Early Years Alliance said eligible parents who apply for the scheme through the government website will be given a code to take to a childcare provider who will then notify them if they have spaces available.

Leitch said: “You may qualify for your entitlement but that does not guarantee you a place. It is a huge assumption that you would automatically be given a place. If you are, it may not be the hours you are looking for. “Alternatively, you could be placed on a waiting list until a space becomes available. This code is then useless — it is a bit like telling someone you can have this free food in a supermarket but then seeing empty shelves when you arrive.” Leitch, whose organisation represents nurseries, preschools and registered childminders among others, said they have encountered parents who have been on waiting lists for 18 months. “Waiting lists are likely to grow and grow,” he added. “Parents desperate to return to work will have to abandon their plans and take stock of what to do next. Even if providers have the funding for spaces, the fact is that they may well be struggling to recruit adequate people.”

Leitch argued that Hunt’s new measures are an example of “announce first and do the thinking afterwards”. The expert noted the childcare sector is already struggling to provide the 30 hours of free childcare per week in term time for three- and four-year-olds in England that was rolled out by ministers in 2017.

Lauren Ellis, a teacher, said her “fantastic” local nursery has been pushed into a position where they can no longer offer any funded places. “It is a nationwide issue,” the 35-year-old said. “It is not their fault. If the funding had come in, it would have halved my childcare costs.