
New Childcare Funding Will Save Families Up to £7,500 Per Year
Working parents across England can now apply for 30 hours of funded childcare per week, marking a significant expansion of the government’s childcare support program. Starting today (May 12, 2025), parents of children who will be at least 9 months old before September 1 can submit applications for this enhanced childcare funding, which is set to begin in September 2025.
This expansion represents a substantial financial relief for families, potentially saving them up to £7,500 per year for each eligible child. For parents who also have school-aged children, the combined savings could reach approximately £8,000 annually when including benefits from the government’s free breakfast club initiative and school uniform cost cap.
Education Secretary Bridget Phillipson emphasized the government’s commitment to early childhood education: “This government has a clear Plan for Change to break the unfair link between background and opportunity across this country, which starts by ensuring our children start school ready to learn. Early years is my number one priority, and making sure families can benefit from this rollout is a promise made, and promise kept.”
Half a Million Children Already Benefiting from Initial Rollout
The 30-hour expansion builds upon the successful implementation of 15 funded hours that began last September. According to recent data, nearly 500,000 children (499,592) are already accessing more affordable, high-quality early education and childcare through this initial phase.
Despite inherited delivery challenges, the government has demonstrated its commitment to expanding childcare access by investing an additional £2 billion compared to last year. This substantial funding increase supports existing childcare providers in meeting the growing demand, which requires an estimated 35,000 additional staff and 70,000 new childcare places by September.
Economic Benefits: Supporting Parents to Increase Working Hours
A new government survey reveals that the childcare entitlements introduced last September are effectively breaking down barriers to employment and supporting economic growth. Lower-income families are experiencing the most significant impact, with one in five families earning between £20,000 and £40,000 reporting they’ve increased their working hours thanks to the 15-hour childcare provision.
Looking ahead to September’s expansion, more than half of the 2,723 survey respondents who plan to increase their childcare hours also intend to increase their working hours—a positive development for both families and employers.
Matthew Percival, Director of Future of Work and Skills at CBI, noted: “It’s good to see the rollout of the final phase of the UK’s childcare expansion. The CBI made the case that expanding childcare support was good for growth because our members told us that the cost of it was preventing parents from working or taking on more hours. Moving from 15 to 30 funded hours gives working families greater flexibility, helps employers access more of the talent they need to grow, and supports a more productive economy.”
High Success Rate in Securing Places
The rollout’s success thus far is largely due to the dedication of nurseries, pre-schools, childminders, and local authorities. According to government data, 6,123 out of 6,337 respondents who applied for government-funded hours last autumn successfully secured a place, demonstrating a high placement rate.
Justine Roberts, Founder and CEO of Mumsnet, encouraged eligible parents to take advantage of the program: “We’ve heard from countless women on Mumsnet pushed out of work by unaffordable childcare. This expansion of support is a major step in tackling that, giving parents, especially mothers, the freedom to stay in work if they choose, which benefits families and the economy. We urge all eligible parents to check what they’re entitled to and make full use of it.”
Beyond Financial Benefits: Supporting Child Development
The government emphasizes that early childhood education offers benefits beyond financial relief. Quality early education and childcare help children develop confidence, learn social skills, and prepare for school. The government survey found that 83% of parents agree that childcare is important for their children’s social development.
Sophie Lovell from Nottingham, who uses the 15 hours funding for her daughter, shared her experience: “The government’s childcare support has been great for our family. Having my child in formal childcare has provided wonderful opportunities for her to play, learn, and grow. As a parent, balancing everything can be overwhelming, but knowing your child is supported by trained professionals makes all the difference.”
New Consultation on Outdoor Space for Play and Learning
Recognizing the significant benefits of outdoor play for children, including improved problem-solving skills and better mental and physical health, the government has launched a consultation on how nurseries can better utilize outdoor spaces for play and learning.
While the current early years framework requires provision for outdoor play, it only formally recognizes indoor space when determining how many children nurseries and childcare providers can accommodate. However, research shows that 70% of providers would make better use of their outdoor space if given more flexibility.
The consultation aims to determine whether providers should be allowed to include high-quality, accessible, and safe outdoor space in meeting these requirements, and what appropriate conditions should be established if gardens and play areas are to be fully incorporated into early learning experiences.
Lydia Hopper, CEO of Grandir UK, expressed support for this initiative: “We are supportive of the inclusion of free-flow outdoor space within the EYFS space requirements. At Grandir UK, we’ve actively champion free-flow outdoor play – it’s a big part of how we support children’s learning and development. We draw inspiration from Forest School principles, helping children explore nature and learn through play in the fresh air.”
How to Apply
Eligible working parents of children who will be at least 9 months old before September 1, 2025, can now apply for the 30 hours of funded childcare. For more information and to apply, parents should visit the official government website at www.gov.uk/childcare-calculator.
This latest expansion of childcare support reflects the government’s ongoing commitment to providing every child with the best possible start in life while supporting parents in balancing work and family responsibilities.

Katherine Johnson is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.