Coram Family and Childcare has found that families living in poverty, from ethnic minority backgrounds, with English as an additional language, or with disabled children are “significantly less likely to take up their entitlements”.
The government currently offers 15 hours of free childcare to all three and four-year-olds, as well as disadvantaged two-year-olds.
In 2015, the government estimated that approximately 40% of two-year-olds would be classified as “disadvantaged” and eligible for the offer.
However, by 2023 the percentage of two-year-olds estimated to be eligible had dropped to 27%. This is because income thresholds have not changed since 2018, despite substantial inflation since then.
Lydia Hodges, head of Coram Family and Childcare, said: “At a time when childcare seems to rarely be out of the spotlight, these findings show that children who may benefit the most from early education are often missing out.”
Researchers found that parents find the different entitlements confusing and difficult to navigate, with lengthy processes and complex systems, which are particularly challenging for parents with English as an additional language or with low literacy or digital skills.
Some childcare schemes come with additional charges, even with those from disadvantaged backgrounds, to cover the cost of food and other activities – in spite of 15 hours of childcare being supposedly free for eligible children.
Further confusion has been created by the expansion of free childcare launched by the Conservative government. By 2025, most children whose parents work will be able to get 30 hours of free childcare every week.
However, charities have warned that the most disadvantaged children will once again miss out. Children whose parents earn less than £8,650 each are not eligible for the scheme and will miss key opportunities for development.
Research shows that early education has a significant benefit for children’s development – meaning that disadvantaged children are at risk of “falling behind” their peers, as the Big Issue has previously reported.
“Disadvantaged children are entitled to only half the hours of funded early education that children with working parents get, and at a later age. We have to ask ourselves if this is what we want for our children. Childcare is important for enabling families to work, but going to nursery isn’t just about childcare, it’s early education too,” Hodges said.
“The government has recognised that in their commitment to breaking down barriers to opportunity for every child, and their ambition to boost the number of children reaching their early learning goals. To do that, the funded entitlement must be accessible to all children.”
Last year, Save the Children UK found that up to 900,000 disabled single parents and single parent carers were missing out on childcare hours because they did not meet work requirements.
A single parent carer and disabled single parents are required to earn at least £183 a week to qualify for the free working families offer. If a parent in the same circumstances has a partner in work who earns this, they can qualify without earning requirements themselves.
Talbot said: “While this is clearly unfair, it also places greater pressure on single parent families who are already trying to juggle sole caring responsibilities alongside being the only breadwinner.”
New analysis from charity Praxis, which supports migrants and refugees, estimates 71,000 working families with no recourse to public funds with a child aged between one and four are not eligible for the free hours scheme.
Josephine Whitaker-Yilmaz, policy and public affairs manager for Praxis, said: “More than a million parents are potentially missing out on support with the costs of childcare and therefore unable to work as much as they might like to.
“We know this is already leaving some families at an increased risk of poverty. Children are also missing out on nursery and childcare placements that their financially better-off peers are getting, entrenching disadvantage.”
Although the charities have welcomed the government’s “commitment to long-term reform of the childcare system”, they have called on the chancellor to expand the eligibility criteria within the upcoming budget to “make it fairer”.
Coram Family and Childcare has recommended a “fair” funding model that fully covers the cost of delivering the funded hours, including resources for children with SEND and other disadvantaged groups.
It is also urging the government to introduce a universal entitlement to 15 hours of funded early eduction for two-year-olds, which would reduce confusion regarding eligibility and reduce the administrative burden for providers and parents.
Arooj Shah, chair of the Local Government Association’s children and young people board, said: “We share the concerns that disadvantaged children may be missing out on the funded early education and childcare offer, given the current focus on working families.
“Councils also have significant concerns around capacity and workforce challenges to properly support providers and ensure parents and children are getting access to the right care and education.
“It is vital councils are recognised as the strategic leaders in this sector and equipped with the tools, levers and resources – supported by updated guidance and legislation – to strengthen the early years system for the benefit of all families.”
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