The richest households in England will be eight times more likely to benefit from the government’s expanded programme of funded childcare hours, according to research.

An analysis by think-tank the New Economics Foundation (NEF) has found the programme, which provides 30 funded hours of childcare for families where both parents work at least 16 hours a week, denies support to families who would most benefit.

The research finds that only 11% of the poorest households will be eligible for the full expanded hours, while 85% of the richest households will be able to benefit from the package.

Researchers found that working families receiving £34,000 would have to spend more than 11% of their gross earnings to have one child in full-time childcare, while a family on £124,000 would only need to spend 3%.

The researchers propose a new model which includes 15 hours of free childcare for all children above the age of nine months, and a cap of 5% of family earnings on the cost of all additional hours of childcare purchased by working families.

Tom Pollard, head of social policy at NEF, said: “The current system is overly complex for parents to navigate, squeezes the budgets of families already struggling with the cost of living crisis, and denies full access for children from the poorest households, even though we know they are the ones who would benefit the most.

“Our proposed system of a universal 15 hours, combined with a cap at 5% of earnings on what working families pay for additional hours, would be simpler, fairer and, for most families, cheaper than the current system.”

Tim McLachlan, chief executive of National Day Nurseries Association (NDNA), said: “The New Economics Foundation report makes for tough reading. While we know it’s always more difficult for poorer families to access the childcare support, this starkly lays out the gap between children from better off families and their peers. It’s so important that children are not left behind before they even start school. Early years education and support is the best way to achieve equality in education and opportunity for life.”

He added: “We have long called on the government for a system that works for all children that is sustainable by providers. The continued under-funding undermines the fact that money spent in a child’s early years removes the need for higher spending in their later education and life.”