From September 2025, eligible working parents of children from 9 months old to school age will be entitled to 30 hours of free childcare per week during term time.
The government estimates this will benefit over half a million children and save parents up to GBP7,500 per year per child.
By September, around 200 new nurseries will open in schools across England, offering roughly 4,000 childcare places initially, with plans to expand to about 300 sites.
An additional GBP45 million has been allocated to fund 7,000 new nursery places from September 2026 under the school-nursery expansion programme.
The government has increased hourly funding rates for local authorities for children under 2 years old, 2-year-olds, and other early years age groups.
However, many in the sector argue that funding rates remain insufficient to cover rising costs such as wages, utilities, and national insurance. There are growing warnings that many providers-particularly nurseries and childminders-risk financial strain or closure without further support.
The government is consulting on potential changes to nursery space requirements. One proposal is to allow outdoor space (for children aged 2 and above) to count towards the required floor space.
At the same time, regulations on staff-to-child ratios have shifted. Since September 2023, in England, the ratio for two-year-olds has changed from 1:4 to 1:5.
The UK Parliament's Education Committee has launched an inquiry into issues within the early years sector, including staffing sustainability, access, and quality outcomes, as well as the impact of the recent expansion of childcare entitlements.
The Public Accounts Committee has also warned that meeting the expanded childcare entitlements will require approximately 40,000 additional staff and 84,500 extra childcare places by September 2025.