Free childcare crisis as surge in demand leaves Labour with funding black hole
Ministers have been warned the childcare sector is at risk of “collapse” after a boom in demand for free care left a major government scheme in financial peril. A plan to expand free childcare for British families is set to cost the government an extra £1bn per year at a time when ministers are grappling to fill the gaping black hole in public finances.Labour has not spelled out how the funding gap will be filled, but experts predict the shortfall will create “substantial pressure” on the government and could put the entire childcare sector under threat. In an exclusive interview with The Independent, Bridget Phillipson insisted the unexpectedly high take-up – a quarter higher than predicted – was a “good problem to have” and would not leave children without places. But the education secretary could not guarantee that parents would get a space at their local nursery in September, when the scheme expands to offer eligible children aged nine months and older 30 hours a week of free childcare. Industry leaders said parents would be left “disappointed” while nurseries warned a lack of staff meant they were already struggling to deliver the government’s pledge.Labour has not spelled out how the funding gap will be filled, but experts predict the shortfall will create ‘substantial pressure’ on the government More