Child Care in the UK: Navigating Expansion and Workforce Challenges in 2025

Introduction: Why Child Care Matters More Than Ever

Child care has emerged as one of the most pressing policy issues facing families in the United Kingdom today. Since September 2025, the 30 hours childcare entitlement for working families is available to all eligible children from nine months, marking a significant expansion in government support. This development comes at a critical time when the national average price of child care jumped to £13,128 annually in 2024 from £11,582 in 2023, a staggering difference of £1,546, outpacing inflation by 7%. For working parents, access to affordable, quality child care is essential not only for family financial stability but also for children’s early development and school readiness.

The 30-Hour Childcare Expansion

From 1 September 2025, the amount of government funded childcare for eligible working parents in England doubled from 15 to 30 hours for children under 2 years old, meaning all eligible children can access 30 hours government funded childcare from the term after they turn 9 months old until they start school. This major expansion is helping families nationwide with the cost of quality childcare, with potential savings of up to £7,500 a year per child. The expansion represents a substantial investment in supporting working families and improving access to early education.

Workforce Challenges Threaten Delivery

Despite the policy’s ambition, significant workforce challenges remain. In April 2024, the Department for Education estimated there will need to be an extra 40,000 workers in childcare by September 2025 to support the expansion, an increase the National Audit Office called ‘ambitious given the workforce only increased by 5% between 2018 and 2023’. The sector faces ongoing recruitment and retention difficulties, with a survey from the RAPID Survey Project finding that 58% of providers surveyed experienced hunger in June 2025, demonstrating the instability experienced by many in the industry. These workforce pressures could limit families’ ability to access the expanded entitlement.

The Cost Crisis Continues

Even with government support, child care costs remain a significant burden for many families. In 45 states and DC the average annual price of child care for two children in a centre exceeded annual mortgage payments, and in 49 states and DC this cost exceeded median annual rental payments. This high cost of child care would take 10% of a married couple with children’s median income and 35% of a single parent with children’s median household income. The financial pressure on families highlights why affordable child care access remains a critical policy priority.

Looking Ahead: Significance for Families

The expansion of government-funded child care represents a landmark shift in UK family policy, with the potential to support workforce participation, reduce child poverty, and improve early childhood outcomes. However, success depends on addressing workforce shortages, ensuring adequate provider funding, and maintaining quality standards. The current government has revised the statutory guidance on delivering the entitlements, with updated guidance coming into force on 1 April 2025, making clear that extra charges for meals, other consumables and additional services must be voluntary. As the policy continues to roll out, monitoring its impact on family affordability, provider sustainability, and children’s development will be essential to ensuring it delivers on its promise to support working families across the country.