Working parents of children under three in England now pay less than half of last year’s cost for a part-time nursery place, according to an annual survey.

Coram Family and Childcare’s 24th annual survey found working parents of children aged under three paid more than 20% less for a full-time place.

The report also found a part-time nursery place for a child under two now costs an average of £70.51 per week in England, down by 56% on 2024, while a full-time nursery place is down by 22% on 2024. 

However Scotland and Wales have seen an increase in costs, with a part-time nursery place for a child under two now costing an average of £122.38 per week in Scotland, an increase of 7% on 2024, and an average of £155.04 per week in Wales, a 10% increase on 2024.

Childcare costs for three-to-four-year-olds across Great Britain as a whole are up by almost 5%. 

The report also finds that families who are not eligible for the new entitlements for children under three in England, because they are not in work, do not earn enough or do not meet other criteria, pay £105 per week more than eligible families for a part-time nursery place for a child under two. 

However, the report finds gaps in availability for children with special educational needs and disabilities (SEND). Only 29% of local authorities in England who responded to the survey report having enough childcare for at least 75% of children with SEND in their area, whilst just 22% report having enough childcare for at least 75% of children in their area whose parents work atypical hours. 

Lydia Hodges, head of Coram Family and Childcare, said: “This year’s Childcare Survey shows just how different the picture can be for families with funded support from the government, and the new entitlements are a very welcome step towards making childcare affordable for working parents and easing the difficult choices around work and care that parents have faced for many years. 

“However, the system needs to be rebalanced to ensure that all children have the best start in life during their essential early years. Parents who are not eligible for the entitlements are unlikely to be able to meet the cost involved in giving their children the same amount of early education that other children get for free, and many children with special educational needs and disabilities are still finding it hard to get a place.” 

Responding to the report Secretary of State for Education Bridget Phillipson said: “Delivering a better early years system is a top priority—it’s as close to a silver bullet as we have in breaking down barriers to opportunity and giving young people the best start in life.

“This survey highlights the real difference the expanded childcare entitlements are making, with much more to come from September as government funding increases from 15 to 30 hours a week of funded childcare.

“Through our Plan for Change, we’re delivering much-needed improvements for parents, making childcare more affordable, expanding school-based nurseries, and improving early language and maths support. With over half a million children already in a place this term, we’ll keep working with the sector to ensure even more families benefit.”

Neil Leitch, chief executive of the Early Years Alliance, said: “While it is positive that early years places are becoming more affordable for those families who are eligible for funded places, it’s clear from today’s findings that the early years sector in England is fast becoming a two-tier system. 

“With the bulk of the early entitlement offers skewed towards working families, more and more children from disadvantaged backgrounds – who we know benefit the most from early education and care – are at risk of being frozen out of accessing affordable places.  

“Add to this the fact that children with special educational needs continue to find it more difficult than their peers to access provision, and there’s no doubt that under the existing system, the children most in need of support are now the least likely to be able to access it.”