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The report by think-tank Localis says because of concerns over the cost pressure of the free hours on providers, consideration should be given to an alternative sustainable method of allocating free childcare to help relieve the pressure and target those most at need.
It proposes the Government scrap the planned 30 hours of free childcare for working families of three- and four-year-olds and re-invest the money into providing free childcare on a means-tested basis to the most disadvantaged families, based on the current criteria for the two-year-old places.
Under the alternative model, which the think-tank says would cost £64 million less than the Government’s policy, disadvantaged one- and two-year-olds would be eligible for 15 hours of free childcare and three- and four-year-olds, 30 hours.
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