Coram childcare survey: costs fall sharply for families in England as funding expands
Coram’s annual childcare survey shows the expanded funded hours in England are changing what parents pay. But challenges remain on affordability, sufficiency and support for children with SEND needs across the UK.
Childcare costs for many working families in England have dropped following the full roll out of the 30-hour funded entitlement for children from nine months old. Coram’s survey highlights how this is easing pressure on household budgets but also shows gaps in access.
Key findings from the survey:
• England: Expanded 30 funded hours mean that many under-twos can now access a free part-time place in term-time. Full time childcare costs have dropped by 39%
• Not year-round: Families may still face higher charges outside term-time or when stretching funded hours
• Non-eligible families: Those not qualifying pay around £189 per week for part-time under-two places, raising concerns about affordability for disadvantaged families
• Wales & Scotland: Costs continue to rise, with part-time under-two places up 5% in Scotland and 8% in Wales
• Three and four-year-olds: Entitlements unchanged as full‑time nursery costs have increased across all nations since 2025
• Availability in England: Around three quarters of local authorities report sufficient places for most eligible under‑twos
• In Wales, there is a concerning lack of sufficient places across some areas
• SEND provision: Only 44% of local authorities have enough early years SEND places, dropping to 23% for school‑age children.
Tim McLachlan, Chief Executive of NDNA said:
“It’s easy to see the enormous benefits for working families but we remain concerned that those from low income and out-of-work families are not supported in this way. There’s also still nowhere near enough places for children with additional needs and these two categories of children are the ones who would benefit the most from this early intervention. We are also concerned about the lack of sufficient places across some areas of Wales.
“Staffing shortages across the UK cause huge pressure and stress. This could be addressed with better funding rates enabling nurseries to pay more attractive salaries and better progression pathways. Unless funding rates increase there will continue to be a recruitment and retention crisis. From NDNA’s research we know that filling existing vacancies will provide the spaces the Government is needing the sector to provide.
“The report’s graph shows how much less families in England are now paying for their childcare compared with previous years. We would urge these families to continue to pay the nursery costs for those vital aspects which the Government doesn’t fund including food, consumables and additional activities like forest school, so nurseries can continue to offer the breadth of learning experiences to all children.”
In Wales, NDNA is also urging clearer and earlier communication around funding rates so providers and parents can plan and budget with confidence . The Welsh Government has committed to reviewing the rate each year and providers are still awaiting the outcome of this year’s review.
Lydia Hodges, Head of Coram Family and Childcare, said the expansion of funded hours in England is “undoubtedly a welcome support for working families”, while warning of a “stark divide” for families who don’t qualify and calling for steps towards more universal provision and stronger support for SEND children.
Read the full report: https://www.coram.org.uk/news/childcare-survey-2026/
- childcare
- childcare costs
- Childcare Expansion
- early years
- funding
- local authorities
- Scotland
- SEND
- Survey
- Wales
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