Boost to funded childcare will yield economic benefits

By Gov.UK - 08th September 2025

The government has delivered its pledge to fund childcare for 30 hours a week – saving parents £7,500 a year, per child, and putting more money in their pockets.  

Take-up is expected to be over and above initial projections, with over half a million kids on track to be more school ready by age 5 as we give every child the best start in life.  

This also delivers a boost to economic growth as exclusive new government polling finding nearly a third (29%) of parents say the support will enable them to up their work hours. 

The economic benefits will be felt more widely, helping businesses keep skilled staff and widen the talent pool available to boost productivity and raise living standards - two critical parts of the government’s mission to grow the economy. 

Welcomed by business leaders like the British Chambers of Commerce, this is an investment in the next generation, breaking down barriers to opportunity so that every child, regardless of where they are from, gets the best start in life so they can go on to succeed at school, enter high-quality jobs, and contribute to the country’s future prosperity. 

For grandparents who provide childcare support during the working week, the expansion is making a difference - allowing them to step back from daily duties and enjoy quality time with their grandchildren, while parents return to work with confidence. 

This comes as polling shows over 9 in 10 families have secured one of their top three preferred providers, backed by our support for the sector to ensure it can keep up with the increased uptake in places, with total funding rising to £9 billion next year. 

As we unblock the barriers that have held children back, today parents will be able to access an all-new Best Start in Life website to offer support beyond the nursery door, with everything they need to give their children the best start in their early years and beyond.  

The Best Start in Life website brings together trusted information, guidance, and support into one place where parents will be able to check what childcare help they’re eligible for, find their local family services, sign up for tailored weekly updates, and access advice from everything from pregnancy to preparing a child for school.  

Education Secretary Bridget Phillipson said:  

Today shows what change looks like – mums, dads and carers with pounds back in their pockets, children getting the best start in life, and the British economy given a huge boost. 

We know more hours spent in formal early years education means more children are ready to start school. This leads to better outcomes for children, more opportunities to lift their life chances and stronger social cohesion that binds us all together. It’s vital that we get this right, so the government is determined to go further and faster – making access to high-quality childcare a right, where previously it was either unaffordable or out of reach.  

A recent Coram survey shows the real difference these reforms are already making – with costs for families accessing 15 hours more than halved. 

And with government championing the High Court’s ruling that access to the 30 hours must be without mandatory additional unfair charges, experiences for parents are only set to keep improving. 

Victoria, from Gloucester, credits the 30 hours for her ability to balance being a single mother, and full-time headteacher:  

Without them, I’d likely have to cut my working hours. This rollout is a significant step forward in women’s rights and workplace participation.

Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce said: 

The further rollout of free childcare in England is a welcome development for businesses, employees and the wider economy.   

The further rollout of free childcare in England is a welcome development for businesses, employees and the wider economy.   

Jane Gratton, British Chambers of Commerce
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