Childcare Survey 2023: why it shows system reform is needed

Calls for change for our childcare system are coming thick and fast and from an increasingly broad range of people. From 12,000 parents taking to the streets across the country to CBI calling for change to help businesses to Resolution Foundation warning that Britain risks the lowest rates of workforce participation for 30 years as parents struggle to work – the pressure is on Jeremy Hunt ahead of next week’s budget is building.

These calls reflect a worrying situation facing many families across the country as they struggle to work and afford childcare, along with other rising bills. The Childcare Survey 2023, published today, lays bare the urgency of the need for childcare change. Our latest research finds that childcare costs continue to rise steadily, by 5.6 per cent for children aged under two and 6.1 per cent for two year olds. The average cost of a childcare place for a child under two in a nursery in Great Britain is now £149, or over £7,000 per year.

We have run this survey since 2001 and it is normal to see parents hit by significant price rises. But it is cause for particular concern this year as parents grapple with the stark consequences of inflation and a steep rise in the cost of living. Many families are facing the paradoxical situation where they can’t afford not to work but childcare costs mean that they can’t afford to work.

This year’s survey also reveals significant gaps in childcare availability, putting families at risk of not being able to find the childcare that they need. England has seen reductions in availability for all pre-school childcare – only half of local areas have enough childcare for children under two (down 7% on last year) and parents working full time (down 11% on last year).

We are also seeing growing shortages for early education entitlements of 15 or 30 hours. These early educational entitlements were originally designed to support children’s development from an early age by getting them ready to learn at school and beyond. There is strong evidence that high quality early education can narrow the achievement gap between disadvantaged children and their peers, all the more important at a time when this gap is widening before children even start school. But too many disadvantaged children miss out on attending these places. We are also starting to see examples of hard pressed childcare providers prioritising places for parents whose parents are also paying for additional hours. Early education has the power to narrow the achievement gap – but not when better off children are more likely to attend or attend for more hours.

The Childcare Survey 2023 has also revealed a huge gap in childcare provision for disabled children. Our report finds that less than one in five local authorities (18 per cent) have enough childcare for disabled children – a scandalous failure of the system to be inclusive and meet the needs of all young people. We know that the pandemic has had a devasting impact for families of disabled children, as continual disruption has led to poor mental health and a lack of essential services. In order to give disabled children the best possible chances, we want to see serious reform that recognises right to equal opportunities for every child.

This troubling drop in sufficiency across the board has serious consequences for educational outcomes, and disadvantaged children are the group most likely to suffer. Though there have been promising steps in the right direction in recent years (for example, growing awareness about the importance of the early years and the best ‘start in life’), but these persistent gaps remain. If families cannot access the right place for their child, both parents and their children lose out.

Childcare makes an excellent investment because of the double benefits it can achieve – it enables parents to work and it supports children’s development. The system must also acknowledge that childcare is education, and it is therefore in everyone’s interest to make sure that children can access the high quality provision they need to thrive.

Parents’ decisions about childcare are immediate – can I afford to work? Will my child be happy? – but the options available have the potential to make a long term difference to children’s life chances. This is why we need full review and reform of the system, to make sure that the system is meeting the needs of families now and for children’s futures and recognises the urgency of the need for change.