Money Wellness

benefits

Published 22 Apr 2025

7 min read

Britain’s childcare ‘deserts’: what’s causing them and what you can do

Britain has some of the highest childcare costs in the developed world and while the government promised change, for many parents, finding a childcare place is harder than ever. 

Gabrielle Pickard-Whitehead - Money Wellness

Written by: Gabrielle Pickard Whitehead

Lead financial content writer

Published: 22 April 2025

In 2023, the government promised to ‘transform the lives of thousands of women’ and ‘build a childcare system comparable to the best’ by expanding free childcare hours.  

What’s changing and when?  

Stage one: April 2024 

  • 15 hours of funded childcare was introduced for eligible 2-year-olds 

Stage two: September 2024 

  • 15 hours of funded childcare extended to eligible children aged 9 months to 2 years 

Stage three: September 2025 

Working parents in England with children aged 9 months up to school age will be entitled to: 

  • 30 hours of government-funded childcare per week 

  • for 38 weeks a year (during term time) 

Who’s eligible? 

To qualify, your household must: 

  • be working 

  • earn more than £9,518 but less than £100,000 per year 

But the ‘free hours’ rollout hasn’t been plain sailing and ‘childcare deserts’ are growing.  

What’s a ‘childcare desert’? 

A childcare desert is an area where: 

  • there are three or more kids for every available childcare place 

These areas are most common in low-income regions, where access is already limited.  

Where are the worst affected areas? 

According to recent reports: 

  • West Midlands, Yorkshire & The Humber and North East have the worst childcare access 

  • in Doncaster, for example, there are just 17 places for every 100 children 

  • regions like London, the South East and North West fare better 

Demand is soaring but supply can’t keep up  

The government estimates that by September: 

  • an additional 70,000 childcare places will be needed 

  • this will require 35,000 more childcare workers 

What’s the government doing about it? 

Labour has promised 100,000 extra places and over 3,000 new nurseries in schools. The goal is to increase school-based nurseries from 22% to 27% of the market.  

So far: 

  • 1,200 schools have shown interest 

  • 300 schools have been approved 

  • this should create 6,000 new places, with 4,000 opening in September 

Extra support for existing nurseries  

The government is also providing a £75m grant to help private and voluntary nurseries expand following increased costs, including wage increases, higher national insurance contributions and rising utility bills.  

What other support can you get?  

If you're struggling with childcare costs, there may be help available beyond the ‘free hours’ scheme. 

Tax-free childcare 

  • get up to £500 every 3 months per child (or £1,000 if your child is disabled) 

  • that’s up to £2,000 – £4,000 per year 

Are you eligible? 

You may qualify for tax-free childcare if: 

  • you're employed, self-employed or a company director 

  • you (and your partner) earn within a certain range 

  • your child meets age/circumstance requirements 

  • you meet immigration conditions 

Universal credit and childcare 

You may be able to claim back up to 85% of your childcare costs if you’re eligible for universal credit. 

You may qualify if: 

  • you or your partner are working (no minimum hours) 

  • or you have a job offer 

Need help navigating it all?  

If you’re struggling with expenses such as childcare costs, then we can help with:  

You can also check what childcare support you might be able to get via the Childcare Choices website. 

Gabrielle Pickard-Whitehead - Money Wellness

Written by: Gabrielle Pickard Whitehead

Lead financial content writer

Gabrielle is an experienced journalist, who has been writing about personal finance and the economy for over 17 years. She specialises in social and economic equality, welfare and government policy, with a strong focus on helping readers stay informed about the most important issues affecting financial security.

Published: 22 April 2025

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

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Gabrielle Pickard-Whitehead - Money Wellness

Written by: Gabrielle Pickard Whitehead

Lead financial content writer

Published: 22 April 2025

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