​As the last government set out when announcing the expansion of government funded childcare in 2023, this aimed to tackle the fact that ‘the employment rate and hours worked by parents, particularly mothers, drops after childbirth and persists until after their children reach school age’.

Access to childcare continues to be a key factor in helping parents to work. Official statistics from the 2025 Childcare and Early Years Parent survey highlight that around two thirds (66%) of mothers in families with children aged 0 to 4 years said that having reliable childcare helped them to work, and that in the absence of the working parents offer for 9 months to 2 year olds, 40% in receipt of the offer said that they would be working fewer hours.

However, we know that many of those who need and benefit from early education and childcare miss out. Children who attend high-quality early education and childcare between ages 2 and 4 on average perform better at every stage of school, with children from low-income families benefiting the most. Nearly 1.5 million children aged 9 months to school age are excluded from the full 30-hour entitlement because their parents do not meet the eligibility rules. Children in lower income areas face both fewer childcare places and fewer high-quality providers on their doorstep. Childcare is a key barrier to those on low incomes working more, with a disproportionate impact on women.

This is why the department is leading an Early Education and Childcare Review to improve the system so that it is simpler, fairer and focused on children, ensuring support reaches the families who need it most. Through this, as the former Secretary of State for Education set out, universal childcare is something towards which we should build.

​As the last government set out when announcing the expansion of government funded childcare in 2023, this aimed to tackle the fact that ‘the employment rate and hours worked by parents, particularly mothers, drops after childbirth and persists until after their children reach school age’.

Access to childcare continues to be a key factor in helping parents to work. Official statistics from the 2025 Childcare and Early Years Parent survey highlight that around two thirds (66%) of mothers in families with children aged 0 to 4 years said that having reliable childcare helped them to work, and that in the absence of the working parents offer for 9 months to 2 year olds, 40% in receipt of the offer said that they would be working fewer hours.

However, we know that many of those who need and benefit from early education and childcare miss out. Children who attend high-quality early education and childcare between ages 2 and 4 on average perform better at every stage of school, with children from low-income families benefiting the most. Nearly 1.5 million children aged 9 months to school age are excluded from the full 30-hour entitlement because their parents do not meet the eligibility rules. Children in lower income areas face both fewer childcare places and fewer high-quality providers on their doorstep. Childcare is a key barrier to those on low incomes working more, with a disproportionate impact on women.

This is why the department is leading an Early Education and Childcare Review to improve the system so that it is simpler, fairer and focused on children, ensuring support reaches the families who need it most. Through this, as the former Secretary of State for Education set out, universal childcare is something towards which we should build.

​As the last government set out when announcing the expansion of government funded childcare in 2023, this aimed to tackle the fact that ‘the employment rate and hours worked by parents, particularly mothers, drops after childbirth and persists until after their children reach school age’.

Access to childcare continues to be a key factor in helping parents to work. Official statistics from the 2025 Childcare and Early Years Parent survey highlight that around two thirds (66%) of mothers in families with children aged 0 to 4 years said that having reliable childcare helped them to work, and that in the absence of the working parents offer for 9 months to 2 year olds, 40% in receipt of the offer said that they would be working fewer hours.

However, we know that many of those who need and benefit from early education and childcare miss out. Children who attend high-quality early education and childcare between ages 2 and 4 on average perform better at every stage of school, with children from low-income families benefiting the most. Nearly 1.5 million children aged 9 months to school age are excluded from the full 30-hour entitlement because their parents do not meet the eligibility rules. Children in lower income areas face both fewer childcare places and fewer high-quality providers on their doorstep. Childcare is a key barrier to those on low incomes working more, with a disproportionate impact on women.

This is why the department is leading an Early Education and Childcare Review to improve the system so that it is simpler, fairer and focused on children, ensuring support reaches the families who need it most. Through this, as the former Secretary of State for Education set out, universal childcare is something towards which we should build.

Since the introduction of the early learning for two-year-olds (EL2) entitlement the department has collected data on its uptake but does not break this data down by whether or not parents are in working families. Parents may be eligible for EL2 if they are in receipt of Universal Credit and have a household income of less than £15,400. Parents might also be eligible regardless of work status or income if their child is looked after, is in receipt of Disability Living Allowance or has an education, health and care plan.

The latest dedicated schools grant allocations for the early years entitlements over the past five years can be found here: https://skillsfunding.service.gov.uk/view-latest-funding/.

The 3 and 4-year-old working parent entitlement, the 2-year-old working parent entitlement, and the under 2s working parent entitlement are only available to working parents who meet the eligibility criteria. For the universal 3 and 4-year-old entitlement and the early learning for 2-year-olds entitlement, the government has never collected data on whether or not parents who claim these entitlements are in work.

The latest January 2026 statistics relating to funded early education and childcare were published on 2 July 2026 here: https://explore-education-statistics.service.gov.uk/find-statistics/funded-early-education-and-childcare/2026.

These statistics contain headcount level figures on the number of children registered for early-learning for 2-year-olds by basis for funding as well as figures on the number of children registered for the various entitlement types.

The latest dedicated schools grant allocations for the early years entitlements over the past five years can be found here: https://skillsfunding.service.gov.uk/view-latest-funding/.

The 3 and 4-year-old working parent entitlement, the 2-year-old working parent entitlement, and the under 2s working parent entitlement are only available to working parents who meet the eligibility criteria. For the universal 3 and 4-year-old entitlement and the early learning for 2-year-olds entitlement, the government has never collected data on whether or not parents who claim these entitlements are in work.

The latest January 2026 statistics relating to funded early education and childcare were published on 2 July 2026 here: https://explore-education-statistics.service.gov.uk/find-statistics/funded-early-education-and-childcare/2026.

These statistics contain headcount level figures on the number of children registered for early-learning for 2-year-olds by basis for funding as well as figures on the number of children registered for the various entitlement types.

The latest dedicated schools grant allocations for the early years entitlements over the past five years can be found here: https://skillsfunding.service.gov.uk/view-latest-funding/.

The 3 and 4-year-old working parent entitlement, the 2-year-old working parent entitlement, and the under 2s working parent entitlement are only available to working parents who meet the eligibility criteria. For the universal 3 and 4-year-old entitlement and the early learning for 2-year-olds entitlement, the government has never collected data on whether or not parents who claim these entitlements are in work.

The latest January 2026 statistics relating to funded early education and childcare were published on 2 July 2026 here: https://explore-education-statistics.service.gov.uk/find-statistics/funded-early-education-and-childcare/2026.

These statistics contain headcount level figures on the number of children registered for early-learning for 2-year-olds by basis for funding as well as figures on the number of children registered for the various entitlement types.

Departments are responsible for setting out and considering different delivery mechanisms as part of the Business Case process, in line with the appraisal methodology set out in the Green Book.

Let’s talk about my record: six cuts in interest rates; wages rising faster than inflation; trade deals secured; investment delivered; support for our energy-intensive industries; half a million children lifted out of poverty; record investment in our national health service; more money for local transport infrastructure right around the country; the biggest uplift in defence spending since the end of the cold war; and an economy that has constantly beaten the forecasts—an economy that is growing, and an economy where inflation has come down. Compared with the disastrous 14 years when the Conservatives were in office, I would take our record any day.

When the Conservatives were in office, in the last Parliament they borrowed more than the G7 average every single year. This year we are borrowing less than the G7 average and have brought down Government borrowing to 4.2% of GDP in the most recent data. We have brought forward our fiscal rules so that they kick in two years earlier, and we are meeting those fiscal rules, to ensure that we have sustainable public finances—a far cry from those that I inherited.

The available requested information for Universal Credit (UC) limited capability for work and work-related activity (LCWRA) Work Capability Assessment (WCA) decisions where claimants qualified for LCWRA due to 'substantial risk arising from work-related activity' is provided in the table below.

• Based on UC WCA decision data to November 2025, the latest currently available
• UC LCWRA decision volumes exclude ESA transitions (further information can be found at Universal Credit Work Capability Assessment statistics, April 2019 to December 2025 - GOV.UK)
• Numbers are rounded to the nearest 10

Information prior to April 2019 is not readily available and to provide it would incur disproportionate cost.

Information on UC WCA decisions and on UC LWCRA caseload is published and can be found on Stat-Xplore.

For time periods prior to the introduction of UC, information on ESA WCA decisions broken down by reason for allocation (including substantial risk) can also be found on Stat-Xplore.

The Department has considered the potential fiscal impacts of the decision to reduce the maximum Universal Credit deduction rate.

(a) No separate assessment has identified an impact on public sector net borrowing, as any effects are already reflected in the Government’s existing fiscal forecasts.

(b) and c) Please see paragraph 5.134 on page 138 in this link for published information:

https://assets.publishing.service.gov.uk/media/672b9695fbd69e1861921c63/Autumn_Budget_2024_Accessible.pdf

(d) No additional impact has been quantified on Annually Managed Expenditure.
(e) No additional impact has been quantified on Total Managed Expenditure.

The Fair Repayment Rate was announced in the 2024 Autumn Budget, and reduced deductions from Universal Credit from 25% to 15%. This measure helped around 1.2 million Universal Credit households with deductions retain more of their Universal Credit award, on average £420 a year, supporting the Government’s wider objectives to raise living standards, reduce poverty, and respond to ongoing cost‑of‑living pressures.

PIP assessment costs are managed and recorded at an overall Functional Assessment Service level rather than by specific assessment types or benefits, and as such the department does not hold this information.

The Chancellor set out a package of measures on 21 May to support families and businesses. Final costings for all measures will be published at the next Budget following certification from the Office for Budget Responsibility (OBR) in the usual way.