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Government to set out ‘early years strategy’ later this year, education secretary confirms

Government to set out ‘early years strategy’ later this year, education secretary confirms

22 May 2025  

Speaking on The Martin Lewis Podcast, Bridget Phillipson said of the early education and wider childcare system: "It's not as easy to navigate for parents as it should be. It's a system that's had bits added onto it at different times. I think there's a need to bring it all together. We will do that and I'll set out plans later this year around an early years strategy, because there are big questions as well around how we support people to work in early years and I know providers have concerns about that too."

The dicussion included:

Tax-free childcare and the fact that the upper limit on support hasn't changed since the launch of the scheme, despite increases in early years and wider childcare costs (the educator secretary said there were no plans to make any changes to tax-free childcare "immediately"). Martin Lewis also pointed out that 800,000 eligible families do no claim tax-free childcare and suggested a rebranding of the scheme as the 'working family childcare top-up'.

The fact that early entitlement and tax-free childcare eligibility income limits apply per individual, rather than household. This means that if one parent in a dual-parent household earns over GBP100,000, and their partner earns GBP20,000, or one parent in a lone-parent household earns over GBP100k, they are excluded from accessing these schemes. The education secretary described ths as a system the Labour government "inherited", admitting that "in pure policy terms, it's obviously an anomaly" and committing to taking the point away and speaking to the Chancellor about it.

The fact that children only become eligible for early entitlement offers the term after they reach the relevant ages, which the education secretary described as a "fair challenge" and an issue she hears about "quite a lot".

Funding for the early entitlement not matching rises in costs in national minimum wage and National Insurance changes. In response, the education secretary pointed to the GBP75 million early years expansion grant for providers and recent increases in the Early Years Pupil Premium, though she later said that she does "want to make sure the sector gets a fair deal".

The ongoing decline in the number of childminders operating in the sector.

During the podcast, Ms Phillipson said:

"All of this [including] the thresholds, the entitlements, the complexity of the system, term-time only, how all of that works, I want to bring all of that together, think differently about how we deliver a system of childcare support for parents...

"We have ha to focus on getting all the plans in place for the big expansion in September which has been a really big undertaking - lots more staff needed, lots more places need - but once we get beyond that, you will hear a lot more from us as a government about the wider reform that I will bring to the childcare system, dealing with these points that I can't really get to grips with now but I'm determined to sort.

Source: Early Years Alliance

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