Free Childcare

Free childcare expansion: step forward to support working parents in England, but crucial parents are aware of their entitlement

• From September, 15 hours free childcare support will be extended to eligible working parents with a nine-month-old in England. Expanding on the support introduced for two-year-olds in April.
• Official figures in the run up to April’s change found two in five parents of under-twos were unaware of the roll out of the extension to childcare funding, and awareness was lowest among the poorest families*

Catherine Foot, Director of Phoenix Insights, Phoenix Group’s longevity think tank said:

“The expansion of childcare funding to nine-month-olds is another step forward to support working parents in England manage the affordability of childcare. Over a third of parents of under-fives struggled to meet childcare costs last year*, so extending the funding will provide some financial relief to this group.

“But it’s not just the short-term financial benefits. Parents who increase their working hours or return to work because of the new support will likely receive a boost to their retirement savings. Most people saving in a workplace pension pay a proportion of their salary to their retirement savings alongside an employer contribution, so any increase in earnings can increase pension contributions.

Awareness of new entitlement lowest among the poorest families

“While the new support is welcomed, it’s crucial parents are fully aware of what they are entitled to. Official figures in the run up to April’s change found two in five parents of under-twos were unaware of the roll out of the extension to childcare funding, and worryingly awareness was lowest among the poorest families. Many of these families face challenges balancing living costs, work and childcare, so it’s important they aren’t left in the dark about the support available.”