Workers Miss Out on Free Childcare Support

By the Editorial Team · Thursday, August 6, 2026

Between 50,500 and 99,000 children in the UK are missing out on government-funded free childcare because the income threshold of £100,000 has not been updated since 2017, disqualifying families where one parent earns above this limit. This widening eligibility gap, driven by wage growth and inflation, has led to a fourfold increase in affected children since 2018-19, prompting calls for policy review to better support working families.

Between 50,500 and 99,000 children in the United Kingdom are estimated to be missing out on government-funded free childcare due to an income threshold that has remained unchanged since its introduction in 2017. The threshold disqualifies families from claiming the full 30 hours of free childcare weekly if either parent has an adjusted net income above £100,000, even if the other parent is not employed.

The government offers up to 30 hours of free childcare per week for working parents of children aged between nine months and four years. Additionally, families with children aged three or four can claim 15 hours of free childcare weekly regardless of income. However, the £100,000 income cap acts as a cliff edge: once one parent exceeds this level, the family loses eligibility for the full 30 hours of funded childcare.

New figures, obtained through a Freedom of Information request by wealth management firm Quilter and released by the Department for Education (DfE), show that the number of children affected by this cutoff has more than quadrupled since 2018-19, when between 10,900 and 22,500 children were impacted. The rise is largely attributed to wage growth outpacing the static income threshold, as well as increasing childcare costs.

Ian Futcher of Quilter highlighted the wider implications of the current policy, noting that while £100,000 remains a relatively high income, its real value has declined due to inflation and economic changes since the threshold’s establishment. He suggested that this has resulted in more families being caught by rules that were designed in a different economic environment.

Futcher also pointed to potential strategies for families to maintain eligibility, such as making pension contributions, which reduce adjusted net income and could therefore preserve access to childcare support and other tax benefits. This approach might not only help parents secure childcare funding but also enhance their long-term retirement planning.

The Department for Education has been contacted for comment on the findings and the concerns raised about the current income threshold and its impact on access to free childcare. Meanwhile, parents affected by the threshold continue to navigate the complexities of balancing childcare provision with changing income eligibility rules.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.