What the new childcare proposals mean for you

By Anna Letouze

There was good news for parents in this year’s Spring Budget when it was announced that the government will be extending funded childcare. This funding extension will mean that by September 2025 working parents of children over nine months and up to five years will be entitled to thirty hours free childcare per week.

As any working parent knows, paying for childcare before the existing funding for three-year-olds kicks in can be financially crippling. That the government acknowledges this struggle is a big step forward for families.

This policy has the power to help more parents back to work and improve the quality of family life with increased income. However, it’s important to acknowledge that when you look more closely at the policy, there is a risk that it could potentially exacerbate existing issues in the childcare system.

Unfortunately, the childcare system has not received full government funding to support the ‘free’ childcare places for children ages 2 to 4 that it introduced some years ago. In response, nurseries have had no option but to increase fees to meet the shortfall, resulting in the cost of childcare increasing for many parents.

Simultaneously, the running costs for childcare providers have skyrocketed and they have been closing en masse; over five thousand in the past year alone.

Again, funding for the government’s ambitious new plans for children ages 1 and 2 is estimated by the CBI to be half of what it will cost to implement, which will likely result in more closures, more competition and higher fees. Currently, the maths just doesn’t add up.

From April 2024, all 2-year-olds will be eligible for fifteen hours of free childcare. From 2025, children aged nine months and above will be eligible for thirty free hours

The reason for the delay is that the dwindling number of providers couldn’t cope with a sudden increase in demand. Even with the longer lead time, many providers still won’t be able to afford to offer the required places. This may leave some parents in the same situation of not being able to access their entitlement.

If your child is going to be eligible for free hours under the proposed changes, get ahead now and check with your local providers to ask whether they are going to be offering free hours for 2-year-olds. If they are, you may need to put your child on a waiting list because, as things stand, there may be a lot of competition for places.

In the meantime, there are other things you can do to lighten the load. First, make sure you’re claiming all the benefits you’re eligible for. If you are a working parent and not currently claiming financial support, start with the government’s online benefits calculator at www.gov.uk.

It’s also worth researching any other sources of support you may be able to access. The Cost of Living Support on the Working Families website (www.workingfamilies.org.uk) is a good start point.

You could also consider requesting flexible working. Everyone has the right to make a request once in a role for twenty-six weeks.

Currently employers are not obliged to consider it, so prepare the groundwork to put forward a strong case. Head to the Working Families website for advice and free resources on the best way to make a request.

Anna Letouze writes on behalf of Working Families (www.workingfamilies.org.uk), the UK’s national charity for working parents and carers.

Flexible Working Bill

Flex is becoming an everyday part of our working lives and the upcoming Employment Relations (Flexible Working) Bill will facilitate flex for many more parents and carers who need it.

If it is passed later this year, the bill will make requesting flexible working a right from day one, permit two requests a year, reduce the processing time, remove the requirement to explain how a proposed arrangement will work and require a consultation between employee and employer should the request be rejected.

Find your flex

Flex comes in all shapes and sizes. Hybrid or remote working, reduced or compressed hours, changing start and finish times, flexitime, job share; the list goes on.

If we start thinking of roles as comprising different tasks there is often an element of flexibility in when and how we can complete those tasks.

There’s no one way to work flexibly; instead, it is best achieved with a solution that is tailored both to your needs and the needs of your employer.