A new survey of over 870 childminders in England highlights significant concern over childcare funding rates for three- and four-year-olds, as the government’s expansion of funded childcare in England continues from Monday 1 September. Funding for this age group remains significantly lower than for younger children aged nine months to two years, leaving many childminders reporting they have restricted funded places for families with three- and four-year-olds, or withdrawn from offering funded provision for this cohort altogether. 

 Since the expansion of childcare funding in April 2024:

• 31% of childminders have restricted the number of funded places for three- and four-year-olds.
• 11% have stopped offering funded places for this age group altogether.

Many childminders have also had to take other measures to cope with the funding shortfall, including:

• Reducing trips or outings (40%)
• Increasing the hourly rate for non-funded children (38%)
• Cutting back on activities (28%)
• Asking families to provide items such as food, nappies or suncream (23%)
• Working longer hours or more days per week (13%).

Almost half (46%) of childminders say they already charge extra for voluntary “consumables” or additional elements – such as food, nappies, or off-site activities – with a further 25% considering introducing these charges.

Childminders are also restricted by the rule that prevents them from claiming funding for children who are related to them. Almost 1 in 5 (18%) report that they have had a relative move a child from their childminding setting in order to access early years funding elsewhere. Of those who do provide early education and childcare for a child related to them, almost half (49%) do so free of charge.

Helen Donohoe, Head of Coram PACEY comments: 

“With the expansion to funding for working families beginning on Monday, flaws in the current early years funding system are leaving childminders under huge strain. The rates for three- and four-year-olds are disproportionately lower than younger age cohorts, and because childminders work at much smaller ratios than nurseries, this shortfall hits them the hardest.

“As a result, around four in ten childminders told us that they either no longer offer, or restrict places for three- and four-year-olds. This is especially disheartening as these are often children they have cared for from an early age, building strong bonds and attachments. To stay afloat, many childminders are also forced to cut back on trips and activities or raise costs for privately paying families.

“The situation is made worse by the rule that prevents childminders from claiming funding for relatives. One in five have seen a relative withdraw their child from their care to access funding elsewhere, and around half of those who do provide care for relatives do this free of charge and absorb the financial burden themselves.

The unsustainable funding rate system is pushing more childminders out of the sector at a time when families and communities need their support the most.”