The Early Years Alliance has expressed concerns about the longterm viability of the early entitlement expansion, as applications for the next phase open today (12 May).

Families of eligible children who will be at least nine months old by September can now apply to access up to 30 hours of funded childcare a week, which the government says will save them up to £7,500 every year per child.

A government survey of parents who took up the childcare entitlements last September found one in five of those earning between £20,000 and £40,000 had increased their working hours. The Childcare Experiences Survey also found more than half of the 2,723 respondents who plan to increase their childcare hours intend to increase their working hours.

The survey found 93% of respondents who applied for government-funded hours last autumn were able to secure a place at their first choice of provider, while 81% said the application process was easy to follow. 

Education secretary Bridget Phillipson said: “Early years is my number one priority, and making sure families are able to benefit from this rollout is a promise made, and promise kept. But this is just the beginning.”

She added: “Through the hard work of the sector, supported by our record investment, landmark school-based nursery rollout and focus on vital early learning support, we will deliver an early years system that gives every child the best start in life.”

However, Neil Leitch, chief executive of the Early Years Alliance, said: “Despite the positive spin that the government is putting on the progress of the early entitlement expansion, we remain extremely concerned about the long-term viability of this offer.”

He added: “If the government is to have any chance of successfully delivering this policy – which means ensuring that parents can not only access a funded place, but on the days they want, at the times they need, and at the setting of their choice – then the solution is clear: it must provide the financial support the sector needs, both now and in the future.”

Purnima Tanuku, executive chair of the National Day Nurseries Association (NDNA) said: “With operating and employment costs continuing to rise, including statutory minimum wages and national insurance costs, providers will be looking to the Government’s Spending Review this summer to ensure the funding available to deliver this policy increases to meet the true costs they face.”