Childcare costs for under 3’s could go up!

According to reports on the Telegraph and the BBC, the government’s plan to increase the amount of free childcare from 15 hours a week to 30 hours will push up the fees for under 3’s.

Charities and childcare providers are warning that although the new scheme sounds enticing for parents, it could force up nursery fees for one and two-year-olds.

The scheme is set to be rolled out this Autumn and should be nationwide within two years, although there is already concern about how many nurseries will have the resources and funding to be able to offer double the childcare. 

Jill Rutter, head of policy and research at the Family and Childcare Trust told the Telegraph that without changes to funding there would be three likely outcomes.

“Some nurseries might say they’re not going to offer the extra hours, another possible effect is prices go up for parents outside the 30 hours, for ones and two-year-olds or for extra hours that parents buy on top of the free provision. (Thirdly) If you can’t do that, inevitably, some might go out of business,” she said.

With the current 15 hours free childcare, nurseries have already been asking parents to pay a higher rate for any extra time spend there. The prediction is that increasing fees for younger children is the only foreseeable way to enable the new scheme to run.

CLICK HERE to read the key highlights from yesterday’s Budget.