NEWS

Full-time early years costs fall 39% after expansion of funded hours, but families who miss out face steep fees, survey finds

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Full-time early years costs for families for the government’s early entitlements in England have fallen by 39% since the expansion of the offer, according to the Coram Family and Childcare’s Childcare Survey 2026. Families who do not qualify for the schemes, however, still pay an average 

of £189 a week for a part-time early years place.

This year’s survey is the first to be published since the final stage of the government’s expansion to funded early entitlements in September 2025. It also marks 25 years since the survey began.

Analysis of its data shows that early years costs for children under two rose steadily from 2001 to 2024, often above inflation, before the expansion of funded entitlement reversed this trend.

Part-time places for children under two in England are now theoretically free for eligible families during term-time, whilst the cost of a full-time place has fallen by 39% compared with last year.

Those who do not qualify, however, pay an average of £189 per week for an under two-year-old’s part-time early years place, meaning there is a risk that disadvantaged children are being priced out of accessing the same early years education as those in working families.

The survey also found that only 44% of local authorities in England report having enough childcare for at least 75% of early years children with special educational needs and/or disabilities (SEND) in their area.

Lydia Hodges, head of Coram Family and Childcare, said: “All children deserve that opportunity no matter what their parents earn, and disadvantaged children shouldn’t have to wait or get half measures. We call on the government to start taking steps towards making the funded hours universal, and to address the gaps for children with SEND as part of the upcoming SEND reform, so that no child misses out on this vital boost to their outcomes.”

Alliance CEO Neil Leitch said: “While we welcome the fact that the expansion of the early entitlements has had such a significant impact on costs for those families eligible for the offers, we remain deeply concerned that, far from ensuring that all children get the best start in life, these schemes are in fact widening the gap between children from the most disadvantaged backgrounds and their peers.

“With children only able to benefit from most entitlement offers if their parents meet certain income criteria, there is a real risk that those families most in need of support will find it the hardest to access it. We wouldn’t accept children’s access to primary or secondary education being contingent on their parents’ income or employment status – so why is this acceptable in the early years? 

“With today’s report also finding huge gaps in the availability of care and education for children with SEND, it’s clear that much more must be done to ensure that all children, without exception, are able to access the affordable, quality provision they need. Given that the first five years of a child’s life are the most important when it comes to their long-term learning and development, the stakes couldn’t be higher.”


Nearly three-quarters of babies have daily screentime, new analysis finds

New analysis of a study commissioned by the Department for Education (DfE) has found that 72% of babies have experienced at least some screen time at nine months, while 49% experience up to an hour a day of screentime, with a small minority (2%) experiencing over three hours.

The analysis was undertaken by the Education Policy Institute (EPI) and drew on data from the Children of the 2020s study. According to the study of over 8,000 families, the average daily screen time for nine-month-olds was 41 minutes, with those with no siblings experiencing more screen time compared to those with siblings. The research also found that babies with one parent watch more (average 47 minutes) than those with two (39 minutes).

The research, which also looked at the relationship between screen use and other activities, found that babies whose daily screen use is above two hours were significantly less likely to experience regular enrichment activities, such as being read or sung to, or trips outside.

Despite these concerns, 28% of those surveyed experienced no screen time, and for those watching up to two hours a day, the report found little or no effect on a baby’s ability to experience other activities.

The DfE recently announced it is developing guidance in this area, with publication expected in April.


Parents across England likely to face higher early years costs and a growing shortage of places in the months ahead, new Alliance survey reveals

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A new survey by the Early Years Alliance has warned that government policies affecting the viability of nurseries, preschools and childminders are likely to impact parents across England with higher costs and a growing shortage of places. 

The online survey, which received over 1,000 responses 

from early years providers, revealed that due to increased financial pressure and staffing shortages, many settings in England are struggling to deliver affordable, flexible early years places.

Despite the government identifying the early years as a key policy area, the survey found that 85% of those offering three- and four-year-old funded places say their current funding rate is lower than the cost of delivering places, with 47% saying it is significantly lower; while 16% say that they have reduced the number of three- and four-year-old funded places they offer.

Of the 54% of respondents who receive funding specifically to support SEND provision, 86% stated that the SEND funding rate they receive, along with their early years funding rate, is not enough to provide the quality of care they want to provide for children with SEND at their setting.

Staffing challenges are also having a direct impact on the availability of early years places, with half (49%) of respondents saying that they have limited or stopped taking on new children over the past six months due to a lack of sufficient staff.

The survey revealed that 42% of respondents are actively considering leaving and 78% cite feeling undervalued by government as a contributory factor.

Neil Leitch, CEO of the Early Years Alliance, said: “While disheartening, these responses are sadly completely unsurprising. We have long warned the government that without adequate funding and support, early years providers will continue to face significant challenges in delivering the entitlement offers.

“Despite their best efforts, many providers simply don’t have the staff or the finances to comfortably deliver the affordable, flexible service that families need, and as a result, many parents around the country are likely to see rising costs and potentially a reduction in place availability in the months and years ahead.

“The government says that it recognises the importance of early years education. If that’s the case, then it needs to give the sector the support it needs to ensure that all families can access quality, affordable care and early education, and that every child can get the best possible start in life”.


Early years staffing challenges putting funded entitlement rollout at risk, new report warns

A new report by The National Foundation for Educational Research (NFER) has warned that the early years workforce is not growing as quickly as needed to support the ongoing rollout of the early entitlement offers in England.

The Department for Education (DfE) previously estimated an increase of 35,000 early educators would be needed between December 2023 and 

"...government must provide the recognition and support that early years professionals deserve."

September 2025 to support the full rollout of the early entitlement expansion to all children from nine months from eligible working families.

However, the NFER report – ‘Early Years Workforce in England Annual Report 2026’ – suggests that growth in the workforce may have slowed significantly over the past year: while staff numbers rose by nearly 20,000 between 2023 and 2024, estimates indicate an increase of just 600 between 2024 and 2025.

Although the data is based on DfE survey data and so may not include any late summer boosts in recruitment, NFER has warned that the data suggests workforce growth could be falling short of what is needed to sustain the expanded offer.

The report, funded by the Nuffield Foundation, highlights additional concerns about pay and qualifications in the sector, stating that early years staff earn around 30% less than similar workers, with the pay gap for higher-qualified staff widening to 39% in 2024 to 2025. According to NFER, only a quarter of the workforce is qualified to Level 4 or above, and higher qualified staff are significantly less likely to report good career progression opportunities than comparable workers in other sectors.

NFER education workforce lead, Jack Worth, said: “It is important to acknowledge that meeting recruitment needs isn’t just about hitting the targets. To ensure that children receive the best start in life, more must be done to encourage those with higher levels of qualifications to enter the sector and stay, and provide opportunities for all staff to progress their careers.”

Neil Leitch, CEO of the Early Years Alliance, commented: “It comes as no surprise that early years recruitment has stalled, given the persistently low rates of pay and lack of meaningful investment into the sector. Equally concerning, however, is the ongoing challenge of retaining experienced staff, and we’re clear that without improved pay, conditions and progression opportunities, many skilled educators will continue to leave the sector altogether.

“If we are to have any hope of establishing the early years as a viable long-term profession with genuine career pathways, and building and sustaining a stable workforce, the government must address both issues – and fast.

“Being an early years educator is a vocation, but without adequate funding and development, attracting high-quality candidates will remain difficult, and retaining those with invaluable years of experience will become even harder.

“Simply put: for families to be able to access to the care and education they need, government must provide the recognition and support that early years professionals deserve.”


IN BRIEF

Short news updates from the early years sector and beyond.

A new Clinical Microbiology Reviews paper revealed that children who attend early years settings may fall ill more frequently but tend to experience fewer illnesses during early school years. The research states that vaccination remains the most effective way to protect against childhood illness.


Waterstones Children’s Laureate Frank Cottrell-Boyce warned at the ASCL annual conference that children not read to at home are starting school as "second-class citizens", citing evidence that nearly half begin without early exposure to books.

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