How much parents could save on free childcare - as new 'protections' announced

• Working families are set to benefit from an expanded 30 free hours of childcare per week later this year

• The Government has released new guidance for early years education providers, meaning they have to be upfront about any extras they charge parents for

• They also won’t be able to use these charges to stop parents accessing their free hours

• Tens of millions in new funding to help centres create new places has also been announced

Working families could potentially be thousands of pounds better off from September - as the government unveils new changes to help parents hold onto more of it.

On Friday (February 21), the Department for Education announced new early years education reforms, including protections for families to prevent “overcharging on childcare”. It was accompanied by a significant £75 million cash injection for nursery schools to expand and offer more places - in order to meet an increase in demand expected later this year.

From September, working parents of children aged from nine months all the way through to five years will be eligible for 30 hours of free childcare each week, part of a plan initiated by the former, Conservative Government. Under its first two phases - which came into force in April and September 2024 respectively - parents of children aged nine months and up became eligible for 15 hours of free childcare a week, while 30 hours per week was already available for three to four-year-olds.

But what will the new changes - and the extra free childcare - actually mean for parents? And how much could families stand to save? Here’s what you need to know:

Under the new guidance, parents will have more protection against extra charges on top of the government’s funded childcare offer. It is part of a bid to boost access to high-quality early education by making sure families aren’t being priced out - and put cash back into working families’ pockets, the department said in a statement. 

Providers will now need to be transparent and upfront about any additional charges parents may face - including for things like nappies, baby wipes or lunch. While centres can still charge for these things, these charges can’t be included as a condition for parents accessing their free hours. This will be monitored by local authorities, with government support.

The Government’s dedicated £75 million expansion grant may also help alleviate some of the financial pressure on early childcare providers. The funding will be divided up amongst local authorities, with each getting an average of about £500 thousand - or up to £2.1 million for councils in some of the largest areas.

This is the equivalent of about an extra £80 per two-year old, or £110 per child under two, although the department specifies that “final amounts of funding reaching providers will depend on local circumstances”.

A personalised morning news round-up with NationalWorld Today - sign up here.

The Department for Education said that by using the full 30 hours of government-funded childcare, working parents could save up to £7,500 on average - when compared to paying for it themselves. 

By not being charged for extras, families will be able to save closer to that full amount.

“Giving every child the best start in life is my top priority, and integral to our mission to ensure tens of thousands more children are school ready every year,” Education Secretary Bridget Phillipson said. Concerns have previously been raised about children entering Reception without important skills, like being able to use the bathroom by themselves.

“That’s why despite the inherited challenges we face, we are pressing ahead with the investment and leadership needed to support families and make sure that every child, regardless of background, can access the high-quality early education they deserve,” she continued.

“Today marks an important step towards an early years system that is accessible for parents, sustainable for providers, and better serves children’s development.”

To find out more about accessing free childcare hours, and to find out whether you’re eligible, check out the Government’s official guide online here. It can also walk you through how to apply.