2025 has been one of the most turbulent years the early years sector has seen in a long time — and it’s not over yet.
As we look ahead to the Autumn Budget, many in the childcare world are bracing themselves for more announcements that could once again reshape how early education and care is funded and delivered across England.
But what does this really mean for parents?
A Year of Constant Change
Since last October, nurseries, preschools, and childminders have been navigating wave after wave of change. Two of the biggest challenges hit with just six months’ notice: a significant increase to the National Minimum Wage and a rise in National Insurance contributions. These changes had a huge impact on provider costs, but most settings had no time — or realistic opportunity — to adjust their fees or funding models in response.
Many childcare businesses have had to absorb these increases, placing further strain on already tight budgets. For some, the rising cost of delivering quality care has forced them to reconsider their opening hours, staffing levels, or even whether they want to continue offering government-funded places at all.
The ‘F’ word…… “Free”
The government’s expansion of funded childcare — offering “free” hours to younger children from 9 months old — has been widely welcomed by parents. And rightly so: access to affordable childcare can be life-changing for families.
Our campaign was established to reveal the truth behind free childcare, because it is an agenda, not a system. Nothing in the free childcare guidance supports an operating childcare’s business model.
Behind the scenes, every setting offering funded hours has had to rework its funding policy — again. New controls placed into funding agreements have created a complex and very difficult situation for nurseries and childminders to navigate. These aren’t just technical tweaks — the changes are dictating whether a setting can stay open, or not.
New Guidance, New Pressures
Alongside the funding shake-up, 2025 has also brought major updates to key regulations. New guidance on food and nutrition, safeguarding expectations, EYFS (Early Years Foundation Stage) changes, and the proposal of Ofsted “scorecards” have all landed this year — each requiring time, training, and careful implementation.
It’s been described by some in the sector as “a full-time job just keeping up,” all while trying to maintain high-quality care for children and reassurance for parents.
So, What’s Next?
The Autumn Budget is just around the corner, and with it could come further announcements that impact funding, staffing, or how “free” childcare will be delivered in 2026 and beyond.
Understandably, many providers are nervous. After months of scrambling to respond to policy shifts that prioritise expansion over sustainability, there’s a growing question in the sector: is this the calm before the next storm?

Why This Matters to Parents
If you’re a parent whose child benefits from funded childcare hours, you might not always see the pressures your provider is under — but they’re very real.
Many settings are doing everything they can to keep their doors open and standards high, even as costs rise and regulations shift. The government’s childcare plans may be ambitious, but without long-term funding that truly reflects the cost of delivery, there’s a risk that more settings will struggle — or close altogether.
As we await the Autumn Budget, one thing is clear: parents and providers alike have a shared interest in a childcare system that’s not only accessible but also sustainable.
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