The Government has brought forward its plans to double free childcare for working parents, with the scheme due to begin rolling out to parts of the country in September 2016, a year earlier than originally planned.
Under the new Childcare Bill, eligible families where both parents or a lone parent are in work will benefit from up to 30 hours of free childcare for 3 and 4 years olds during term-time.
The average funding rates paid to childcare providers are also set to increase, with a review planned to begin by the summer.
The changes are expected to benefit up to 600,000 families, resulting in total childcare cost savings for parents of around £5,000 a year.
The British Chambers of Commerce (BCC) has welcomed the news. John Longworth, BCC Director General, commented, “Expanded access to childcare is a win-win for employers and parents alike, enabling more talented individuals, should they wish, to stay in work. However, in funding this, we hope the Government move towards a cost effective method of supporting working parents through a fiscally neutral Childcare Contribution Scheme instead of previous commitments to raid pensions savings”.