Over £2,500 back in parents’ pockets this Christmas thanks to government childcare support

The cost of Christmas this year is that much easier for more than half a million parents, thanks to vital government support putting over £2,500 back in their pockets.

Families up and down the country know the pressure of Christmas costs creeping up all too well, but for many parents, funded childcare and free breakfast clubs are helping make ends meet. 

Parents who started using 30 hours of government-funded childcare from when it rolled out this September may have already saved around £2,500 per child by Christmas – and that support doesn't stop when the decorations come down.

With even bigger savings ahead, families can benefit from support worth up to £7,500 over a full year – protecting the family finances while ensuring children can access the high-quality early education they need. This is all part of the government's drive to support families with the cost of living and deliver national renewal.

Alice Barrett, mum to a three-year-old from Nottingham, said:

“We're saving over £700 a month thanks to the expansion of childcare support, which has made a real impact on our family.

“Being able to access an additional day at a school-based nursery before my three-year-old starts school next September has meant I can work more hours, while knowing he's settled and learning in a familiar school environment. That saving has really helped at Christmas, allowing us to afford festive outings and experiences we might otherwise have had to cut back on.”

The expanded childcare offer has seen take-up over and above expectations, with over half a million families already benefiting, and the vast majority of eligible parents accessing a place in one of their top three choices of nurseries or childminders.

And for families with older kids, the government's free breakfast clubs have already saved parents around £180 per child this school year - with families set to benefit from up to £450 in savings over a full year, helping ease costs well beyond the festive period.

Early Education Minister Olivia Bailey said:

“As a mum, I know how quickly the costs can pile up at Christmas.

“Our funded childcare offer is already making a huge difference to thousands of hard-working parents, keeping more money in their pockets at one of the most expensive times of year.

“With thousands of pounds of support available over a full year, I'd encourage all parents to check what they're entitled to, so they don't miss out on help that can make Christmas, and the months beyond, that little bit easier.”

The expansion of government-funded childcare is a key part of the government's plan to break down barriers to opportunity and support working families. By making childcare more accessible and affordable, the government is helping parents stay in work and progress in their careers, while ensuring more children start school ready to learn.

With Christmas spending putting pressure on household budgets, parents who are newly eligible for childcare support are encouraged to apply before 1 January.

This comes as new polling from Ipsos shows too many parents still aren't taking up the transformative offer - with around 2 in 5 parents from ethnic minority backgrounds not aware of the childcare support available. The government is urging all parents to check their eligibility before the new year so they do not miss out on savings of up to £7,500 in 2026.

Notes to editors

• Savings figures are estimates based on published annual childcare values and average term lengths. Actual savings may vary depending on provider fees, hours used and individual circumstances.
• Ipsos polling: Parent Poll Wave 15: Childcare Use and Childcare Entitlement Expansion | Ipsos
• The recently announced Child Poverty Strategy sets out the steps we are taking to reduce child poverty in the short term, as well as putting in place the building blocks we need to change the course we're on and create long-term change.
• The Government is investing in the future of our children and introducing a fundamental change by removing the two child limit on Universal Credit and therefore reinstating support for all children.
• The removal of the two child limit will lift 450,000 children out of poverty, rising to around 550,000 alongside other measures announced this year, such as the expansion of free school meals. These interventions will lead to the largest expected reduction in child poverty over a Parliament since comparable records began. 
• Investing in children is an investment in the UK. Work is already underway to fundamentally fix the structural drivers of child poverty so families can access affordable better-quality housing and parents can enjoy secure, rewarding employment, and the financial autonomy that this brings.   
• There are those who would say that we cannot afford to act. But of course, we must act now. To grow our economy, we need to make sure our children – the nation's future workforce – can grow, prosper and thrive
• We have already made downpayments on the Child Poverty Strategy through action on major drivers of child poverty, including an expansion of Free School Meals that will lift 100,000 children out of poverty by the end of this Parliament, and a new £1 billion package (including Barnett impact) to reform crisis support.