The Treasury is reportedly looking into a proposal that will significantly expand free childcare to one- and two-year-olds across England

According to a report in the Guardian, this move would cost billions at the Spring Budget.

Currently 30-hours-per-week offering occurs a term after a child turns three. But a proposal being considered would expand that to start at nine months. Further options from the Department for Education include offering a smaller number of free hours for two-year-olds, 10 free hours for disadvantaged one-year-olds, and changing the ratios for childcare providers to allow adults to look after more children.

The Confederation of British Industry has also called on the government to place more funding into free childcare to support the workforce shortage crisis. The business group stated that an accessible and affordable childcare system is an economic priority.

It comes as the government faces growing demands to support a sector that is on its knees across the whole country but an underfunded expansion of the scheme will not deliver any sustainable solution.

Commenting, Neil Leitch, chief executive of the Early Years Alliance, said:

“We fully recognise that the current lack of support towards the cost of childcare and early education for most under-threes is creating huge financial challenges for many families, and so it is unsurprising that government is now feeling under pressure to address this gap. 

“That said, the harsh reality is that for years now, the existing so-called ‘free childcare’ schemes have been grossly underfunded because adequately investing in these policies was, in government’s own words, ‘unaffordable’. We are deeply concerned, therefore, about any suggestion of expanding upon the current early entitlement offers without first acknowledging and addressing the significant shortfalls in government funding that already exist. 

“Put simply, if the government extends the 30-hour offer to parents of one- and two-year-olds without first ensuring that funding actually covers the cost of delivering places, the entire early years sector will collapse. Promising more ‘free childcare’ without adequately funding it was exactly what got us into the current crisis. It is critical that ministers don’t make the same mistake again.”

Jonathan Broadbery, director of policy and communications at NDNA said: “We have been talking to the government for years about fixing the problems with how childcare is delivered in this country. Before any plans for expanding childcare are considered, the current funding crisis in the early years sector must be fixed.

“In the UK, the level of investment in our youngest children’s education and care is among the lowest in developed countries. Whilst expanding the offer to parents of younger children would help grow our economy, investing in high-quality early education and care is vital for children’s development in those crucial first five years. This cannot be done on the cheap.

“Chronic underfunding means providers cannot cover their costs and constrains efforts to drive up quality. With the right investment childcare providers can deliver the high-quality services that support our children to flourish and grow. However, an unfunded expansion of the current system would do even more damage to working families and fail the children at the heart of this policy.”