Liz Truss is said to be considering a shake-up of the childcare subsidy system whereby parents, rather than nurseries, would be given government cash to spend as they see fit.
At present, all three and four-year-olds in England are entitled to 15 hours’ free childcare a week during term time, while some families can claim up to double that amount.
The funding for each place is currently sent straight to approved providers, such as nurseries or childminders.
However the prime minister and her education secretary, Kit Malthouse, are reportedly weighing up proposals to pay the money directly to parents to invest as they wish.
The Department for Education (DfE) said “a wide range of options” are being explored to make childcare more accessible and affordable.
The Times said one option is for parents to be given a flexible childcare budget in place of a paid-for space, with the government potentially loosening the rules on which providers can offer the care and how old children need to be to qualify.
Alternatively, families could be given near-total freedom on how they spend the cash, potentially passing it on to grandparents helping out with childcare.
A DfE spokesperson said: “We are exploring a wide range of options to make childcare more accessible and affordable for parents, but no decisions have been made.”
