25 years of Childcare Survey shows the impact of expanded entitlements on childcare costs for under-twos in England

  • 18 March 2026

The full expansion of the 30-hour funded childcare entitlement in England means that a part-time (25hour) childcare place for a child under two is now theoretically free for eligible families during term-time, whilst the cost of a full-time (50hour) place has fallen by 39% on 2025, according to the Childcare Survey 2026, published today.

Coram Family and Childcare’s 2026 survey is the first to be published since the final stage of the government’s expansion to funded entitlements was rolled out in September 2025*. 

2026 also marks 25 years since the Childcare Survey began and today’s report highlights the difference the funded entitlements have made to childcare costs for eligible working families in England over the last two years. From the start of the survey in 2001 up to 2024, childcare costs for children under two had steadily risen year-on-year, often above inflation, with a part-time place in 2024 costing families almost triple what they paid in 2001. In last year’s survey, the first published after the start of the roll-out of the funded entitlements, costs for a part-time place for eligible families dropped back to the same level as 2005, whilst costs for a full-time place matched the prices seen in 2018. 

However, today’s report highlights that the picture is often more complicated for most families. Entitlements are for 38 weeks of the year, meaning larger bills outside of term time, or higher weekly costs for those who stretch their entitlement over a greater number of weeks. In addition, families who are not eligible for the entitlements – because they are not in work, do not earn enough or do not meet other criteria – have to pay an average of £189 per week for a part-time nursery place for a child under two, meaning there is a risk that disadvantaged children are being priced out of accessing the same early years education as those in working families. 

As the 30-hour funded entitlement for under threes is only in England, families in Scotland and Wales have not seen the same reduction in costs, with a part-time nursery place for a child under two now costing an average of £133.08 per week in Scotland, an increase of 5% on 2025, and an average of £166.33 in Wales, an 8% increase on 2025. Entitlements for three-to-four-year-olds across Great Britain also remain unchanged across all nations, and the costs for full-time nursery places for these children have increased on 2025 by 9% in England, 6% in Scotland and 6% in Wales. 

Today’s report also looks at childcare availability and indicates a positive picture of the expansion roll out, with three-quarters of local authorities in England reporting enough childcare for at least 75% of children under two who are eligible for the 30-hour entitlement.  

Gaps in sufficiency for children with special educational needs and disabilities (SEND) has emerged as one of the most concerning findings of the Childcare Survey over the last 25 years. The 2026 data finds that 44% of local authorities in England report having enough childcare for at least 75% of early years children with SEND in their area, and this falls to 23% for school aged children with SEND**. However, this picture varies widely across the country, and in inner London, only 9% of local authorities report having enough childcare for at least 75% of early years children with SEND, and this drops to 0% for school aged children with SEND. 

Lydia Hodges, Head of Coram Family and Childcare, said: “Looking at the steep rise of childcare costs over the past 25 years shows how crucial the introduction of the government’s expansion to funded hours in England is. Whilst there are complexities and caveats around the entitlement, it is undoubtedly a welcome support for working families. 

“However, our analysis also highlights the now stark divide between those eligible for the entitlement and those who are not. The cost of a childcare place will likely be out of reach for families who don’t qualify, and disadvantaged children will be left waiting to access early education. The focus on children being ‘school ready’ is gathering pace, but we have to ask a question about how much more difficult this will be to achieve for disadvantaged children in England, when they will now get only a third of the government-funded early education that children with working parents get, by the time they start school. 

“We heard from parents about the huge value of childcare in enabling their children to grow and develop in a nurturing, positive environment. All children deserve that opportunity no matter what their parents earn, and disadvantaged children shouldn’t have to wait or get half measures. We call on the government to start taking steps towards making the funded hours universal, and to address the gaps for children with SEND as part of the upcoming SEND reform, so that no child misses out on this vital boost to their outcomes.” 

Read the full report

  • *From April 2024, eligible working parents of two-year-olds were able to access 15 hours of funded childcare per week and from September 2024, eligible working parents of children from nine months old were able to access 15 hours of funded childcare per week. The final phase of the roll out was in September 2025 – eligible working parents of children from nine months old up to school age can now access 30 hours of funded childcare per week, for 38 weeks per year. 
  • **This year there were some changes to the childcare availability questions, including separating the question on childcare sufficiency for children with special educational needs and disabilities (SEND) into two – one for early years and one for school aged children – to give more detailed information