Parents to save £7,500 a year under new government cost of living support scheme

A new government scheme is promising significant financial relief for working parents across England. With thousands of pounds in potential annual savings and expanded support over school holidays, the offer is already being hailed as a game changer. But time is running out to apply.

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Working parents childcare boost
Working parents childcare boost. credit: shutterstock | en.Econostrum.info - United Kingdom

As the school year approaches, working parents in England are set to benefit from a significant financial reprieve. The UK Government has announced the expansion of its 30-hour government-funded childcare scheme, a measure expected to save eligible families up to £7,500 per year.

This initiative forms part of a broader push to ease the financial burden on households facing ongoing cost-of-living pressures. Alongside it, the Holiday Activities and Food (HAF) programme will continue for another three years, ensuring vulnerable children access free meals and structured activities during school holidays.

Expanded Childcare Support Targets Working Families With Children Under Five

Starting in September, parents of children from nine months old up to school reception age will be eligible for 30 hours of government-funded childcare per week. According to the Department for Education, this could save working parents up to £7,500 annually—a move aimed at both supporting family finances and encouraging greater workforce participation.

Applications must be submitted by the end of August to secure a place for the upcoming term. Education Secretary Bridget Phillipson stated the offer will “support parents to get back to work or reduce the pressure on grandparents who so often have to step in”. The programme is also designed to improve early years development, ensuring children arrive at school better prepared for learning.

This policy supports the government’s Plan for Change initiative, which prioritises giving every child the “best start in life”. Ministers argue that easing access to childcare improves long-term educational outcomes and addresses socioeconomic disparities in early childhood development.

Holiday Programme Extended to Fight Seasonal Child Hunger and Inequality

The Holiday Activities and Food (HAF) programme has also received a £600 million extension, guaranteeing its operation for at least three more years. The scheme offers free meals and enrichment activities to school-aged children who qualify for free school meals, helping families save more than £300 annually during holidays.

According to Liz Kendall, Secretary of State for Work and Pensions, the programme will ensure children have “hungry minds, not hungry bellies”, with an estimated 100,000 children lifted out of poverty thanks to the combined effect of free school meal expansion and targeted holiday support.

Feedback from organisations such as Barnardo’s and Save the Children UK has been overwhelmingly positive. Lynn Perry, CEO of Barnardo’s, said the scheme addresses “months of the year where many children might not know where their next meal is coming from”. 

Meanwhile, Meghan Meek-O’Connor, policy lead at Save the Children UK, called the extension “a welcome move to tackle child poverty”. Both policies, delivered in tandem, aim to stabilise family finances, improve childhood outcomes and narrow the development gap across the country.

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