Two-tier childcare system ‘stigmatising’ disadvantaged families, new report reveals

Parents also report feeling overwhelmed by the complexity of the childcare system. There is a significant stigma attached to entitlements for disadvantaged two-year-olds, which discourages families from applying. Local authorities have also pointed out that lengthy application processes, alongside challenges for parents with English as an additional language (EAL) or limited digital skills, make accessing childcare even more difficult.

Further complicating the landscape are the government’s new entitlements for working families. The report notes that mixed messages around eligibility and the purpose of funded hours have created additional barriers, increasing the administrative burden on providers while further confusing parents.

The report makes a strong case for reform, urging the introduction of universal entitlement to 15 hours of funded education for all two-year-olds. It argues that such a move would simplify the system and encourage greater participation among disadvantaged families.

Lydia Hodges, head of Coram Family and Childcare, commented: "In a time when childcare is frequently under scrutiny, these findings indicate that those who stand to gain the most from early education are often left out." She emphasised that disadvantaged children are entitled to only half the funded early education hours that their peers with working parents receive, and at a later stage. "We must consider whether this is the standard we want for our children," she added. "Childcare is crucial for allowing families to work, but attending nursery is also about early education."

Education Secretary Bridget Phillipson acknowledged the crucial role that high-quality early years education plays in breaking down barriers to opportunities for children. She said: "The report underscores a troubling reality where parents, providers, and children have been let down by a lack of clear vision and ambition. Early years education is my top priority, and I am committed to addressing the concerns of both parents and providers."

She pointed to new funding already allocated to establish school-based nurseries in high-need areas, along with initiatives designed to protect parents from excessive charges. Additionally, new training schemes for early years educators working with children who have special educational needs and disabilities (SEND) have been launched, aimed at creating a more inclusive system that offers all children a strong start.

The report shines a stark light on the urgent need for reform within England’s childcare system. By tackling the current barriers and introducing universal access to funded early education, policymakers can help create a more inclusive, fair system for all families. As Education Secretary Bridget Phillipson pushes for these changes, it remains essential that parents and providers continue to advocate for a future where every child can access the high-quality early education they deserve.

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