Overview

• Take-up of free childcare has exceeded projections by 25%, driving last year’s spending to £2 billion compared with the £1.6 billion initially budgeted.
• The Institute for Fiscal Studies estimates the scheme will cost an extra £1 billion annually from 2026/27, lifting total expenditure to around £5 billion.
• Industry leaders warn that current funding settlements and acute staff shortages may force nurseries to cap places or raise fees for families.
• Education Secretary Bridget Phillipson describes the high demand as a “good problem to have” but cannot guarantee that parents will secure spots in their local nurseries this September.
• The rollout’s final phase will extend 30 hours of free childcare to children aged nine months and older, completing the scheme’s planned expansion.