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Government to invest £6bn in free childcare

Joanna Faith
Written By:
Joanna Faith

The government is to make its largest ever investment in free childcare, investing £6bn to help working families and to support nurseries.

From September 2017, the amount of free childcare for working families with three and four-year-olds will double from 15 to 30 hours, worth up to £5,000 per child.

In his Autumn Statement, Chancellor George Osborne said the government will also introduce Tax-Free Childcare from early 2017, providing up to £2,000 per child per year.

This means a family with two kids can claim childcare support worth up to £40,000 through free hours and Tax-Free Childcare by the time both children are at school.

The extra support will only be available to parents with a minimum weekly income level equivalent to 16 hours, if worked at the National Living Wage, and a maximum household income of £100,000.

The most disadvantaged two-year-olds will still receive free childcare.

Funding for the childcare sector will rise by £300m to increase the average hourly rate childcare providers receive. At least £50m of capital funding will also be used to create additional free places in nurseries.