Disadvantaged children are at risk of missing out on the same early education as their more affluent peers due to the eligibility criteria of government-funded childcare entitlements, a new report published today by Coram Family and Childcare warns.
The report reveals that a child with working parents eligible for the entitlements will receive three times as much government-funded early education than a disadvantaged child, by the time they start school.
Today’s report comes as the final stage of the expansion of government-funded early education entitlements begins, giving children with eligible working parents 30 hours per week of funded early education from the age of nine months until they start school*.
The report finds that families who are not in work, or do not earn enough to be eligible for these entitlements, will pay an average of £205 per week to give a child under the age of two the same amount of early education in a nursery.
Families of two-year-olds who are eligible for 15 funded hours (depending on criteria such as receiving benefits) will pay an average of £100 per week to bring their weekly hours to 30 and those who are not eligible for any funded hours will pay an average of £193 per week for 30 hours. Parents of three- and four-year-olds, who all receive 15 funded hours, will pay £96 per week for the additional 15 hours needed to give their children the same amount of early education as children of working parents.
These costs are higher in certain parts of the country, for example in inner London, where families will pay £274 per week for a child under two to access the same amount of early education as their peers in eligible working families.
Groups of disadvantaged children who are excluded from the entitlement include those with parents who do not regularly earn enough to qualify, those with at least one parent in education or training, children whose parents are working migrants with no recourse to public funds, children with a parent who cannot work due to terminal illness, and children of single disabled parents.
Many families who are ineligible for the 30-hour funded early education entitlement may qualify for help with childcare costs through Universal Credit, where the government pays up to 85% of parents’ childcare bill. However, this is usually paid in arrears, making the support inaccessible for those who cannot cover the cost upfront. In addition, parents cannot use Universal Credit towards voluntary additional charges for consumables such as nappies, wipes and food, whereas parents using Tax-Free Childcare (which has the same income criteria as the 30-hour funded early education entitlement) can use this support towards the cost of voluntary additional consumable charges.
Coram Family and Childcare is calling on the Government to:
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In the short-term, extend the working parent funded early education entitlements to children whose parents are in training or education, are migrants who meet the work criteria, or who are unable to work due to terminal illness
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In the longer-term, remove the parental work criteria from the early education entitlements, giving all children an equal right to 30 hours per week of early education from the age of nine months until they start school, and introduce a single, means-tested co-payment system for families wishing to access additional hours, with families below the poverty line paying nothing
Lydia Hodges, Head of Coram Family and Childcare, said: “Whilst the expansion of funded childcare hours is very welcome support for many working families, the focus on parental income risks excluding disadvantaged children who stand to benefit the most from early education, and further widening the disadvantage gap.
“As part of its Best Start in Life strategy, the Government has rightly recognised the importance of affordable, accessible early education, especially for children from low-income backgrounds and is aiming for more children to be ‘school ready’ over the coming years. However, continuing with the policy they inherited from the previous government, without taking steps to address the inequality it has created for children, works against this mission, and the gap between entitlements for disadvantaged children and those with working parents is wider than ever before.
“Parents who are not eligible for the 30 funded hours are unlikely to be able to foot the bill to give their child the same amount of early education that other children get for free. These are often families already facing extra challenges such as lower incomes, illness or disability. Steps must be taken to remove the emerging imbalance and ensure all children have access to the same opportunity to boost their outcomes through early education, no matter their parents’ circumstances.”
*2024 saw the first two phases of the entitlements for working parents in England rolled out – a commitment introduced by the previous government and continued by the new government. The final phase of the roll-out started on 1 September 2025 and eligible working parents of children from nine months old up to school age can now access 30 hours of funded childcare per week
About Coram Family and Childcare
Coram Family and Childcare works to make the UK a better place for families, focusing on childcare and early years to make a difference to families’ lives now and in the long term.
We are a leading voice on early education and childcare, carrying out research to aid understanding and drive change in national and local policy. Every March, we publish our annual Childcare Survey and every July our Holiday Childcare Survey – the definitive reports on childcare costs and availability across Great Britain.
Our network of local Parent Champions schemes reach thousands of parents each year, with dedicated local volunteers ensuring parents are aware of their rights and entitlements, improving children’s outcomes.
For more information, visit our website – coramfamilyandchildcare.org.uk. You can also find our policy overview page at coramfamilyandchildcare.org.uk/campaigns-policy/. You can get in touch by emailing info@coramfamilyandchildcare.org.uk.