Despite recent increases in government spending on childcare, large gaps in support remain for parents pursuing education, particularly those in Further Education (FE). The latest report by the Resolution Foundation, Hard Lessons, highlights this issue and recommends urgent reforms to support parents looking to improve their career prospects through education.
In England, the government’s investment in childcare has surged over the last decade. Spending rose from £5.1bn in 2014-15 to £7.2bn in 2024-25, a 41% increase after adjusting for inflation. This funding aims to make work more viable for parents by reducing the burden of childcare costs, and much of it is targeted at working parents. However, the Foundation’s research shows that this support largely excludes those in education, particularly parents in FE programmes in local colleges at Level 3 or below.
Gaps in support create financial pressure for parents in FE
The government offers working parents with children aged 3-4 an additional 15 hours of free childcare each week on top of a universal 15-hour entitlement. These working parents can also receive further assistance from the Universal Credit (UC) Childcare component, providing support worth up to £12,900 per year. In contrast, a parent in Higher Education (HE), such as a university, qualifies for a Childcare Grant (CG), covering up to 85% of childcare costs up to a cap, for a maximum benefit of around £10,100 annually. This grant, however, does not provide the extra 15 hours that working parents receive.
For parents in FE, the situation is even more challenging. Those studying for qualifications at Level 3 or below (unless they began their course before the age of 20) have no guaranteed childcare support. Their only option is Learner Support, a discretionary fund managed by FE colleges. However, funding is limited, with fewer than one-third of colleges spending more than 20% of their Learner Support budget on childcare. Additionally, over 10% of colleges provided no childcare assistance through Learner Support in 2022-23.
Regional impact: East of England
In the East of England, where access to affordable childcare is crucial to help parents gain new skills, this gap is particularly stark. Many parents in FE are trying to improve their employment opportunities, as this region has a higher-than-average rate of residents working in lower-paid roles – an issue particularly prevalent in rural and coastal areas. However, without guaranteed childcare support, they face significant financial barriers to furthering their education. A vocational qualification at Level 3, for example, can increase wages by up to 32%, highlighting the economic impact that greater childcare support could have.
For young parents (ages 19-24) in England, the Foundation’s report notes a significant “parent penalty”. Parents are 19% less likely to be employed and a staggering 72% less likely to be in education than their peers without children. This disparity underlines the challenges of balancing parenthood and education, particularly without reliable childcare support. The lack of childcare options means that many parents are forced to delay or abandon educational goals that could improve their family’s financial outlook in the long run.
Call for policy change
The Resolution Foundation’s report argues that extending childcare support to all parents in education could help bridge this gap. The proposed reforms would require an estimated £240mn, including:
- Expanding the Childcare Grant to all low-income parents enrolled in full-time study, regardless of qualification level, at an estimated cost of £110mn.
- Providing an additional 15 hours of free childcare for 3-4-year-olds of full-time student parents, aligning them with working parents, at a cost of around £130mn.
These steps, according to the Foundation, would create a more equitable system that acknowledges the value of both work and education in helping parents progress economically.
Supporting parental progression and reducing child poverty
There is broad agreement on the need to support working parents, but the Foundation argues that enabling parental progression through education is equally important. Many children in poverty live in working households, highlighting that employment alone isn’t always enough to escape poverty. Increasing support for student parents would help families gain skills, increase incomes, and provide a pathway out of poverty.
Economist Lalitha Try from the Resolution Foundation says it’s important to address these disparities:
“While a working parent can access up to £12,900 in childcare support, a parent in Further Education could receive nothing. Levelling the playing field would encourage more parents to pursue education, increase their earnings potential, and ultimately reduce child poverty.”
The Resolution Foundation’s findings sheds light on a significant but often overlooked gap in England’s childcare policy. By extending childcare support to parents in education, particularly those in futher education, the government could foster economic stability and mobility. As debates around the upcoming Child Poverty Strategy continue, policymakers should consider these recommendations to ensure that all parents – whether working or studying – have the resources they need to support their families and build better futures.
Based on a report and press release by the Resolution Foundation.
