One Size Fails All

Labour’s Childcare Plan Risks Deepening Regional Inequality

Leeds, May 2025 — A new policy paper from the Leeds Policy Institute (LPI) critically examines the Labour government's childcare reforms, arguing that a blanket nationwide approach risks exacerbating regional inequalities rather than resolving them. The study identifies critical issues in staffing, funding distribution, and accessibility, highlighting the need for targeted reforms that empower local communities to shape childcare policies according to their specific needs.

Read the Full Report

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"Expanding and reforming childcare provision is an urgent national priority. The UK's fragmented and costly system not only limits parental employment but also undermines child development and deepens inequality. The evidence is clear: bold, redistributive investment in early years services yields strong economic returns, improves social outcomes, and can be fiscally neutral if funded through reallocation of existing budgets or progressive levies. Inaction carries significant costs—to the economy, to families, and to the future life chances of millions of children. A comprehensive childcare strategy, rooted in equity and efficiency, is essential to unlock growth, reduce poverty, and build a more inclusive society."

Key Findings:

1. Regional Inequalities Persist: Labour’s plan to convert 3,300 primary school classrooms into nurseries will create approximately 100,000 new nursery places, increasing overall childcare capacity by 6%. However, the paper finds that without strategic regional allocation, disparities in access and affordability will remain—particularly in areas already struggling with nursery shortages.

2. Staffing Crisis Threatens Expansion: Labour's proposal lacks detail on resolving the early years’ workforce shortage. The study shows a 3% decline in early-years staff since 2019, with 57% of nursery workers considering leaving the profession due to low wages and lack of career development opportunities. Without concrete policies to improve pay scales and retain skilled educators, the planned expansion may be unworkable.

3. Affordability and Funding Mechanisms Need Reform: While Labour intends to finance school-based nursery expansions through private school tax reforms, this will not necessarily address local funding disparities. The paper recommends a regionally weighted subsidy system, ensuring resources flow to communities with the greatest need.

   
   

Policy Recommendations:

1. Budgetary Realignment: The Department for Education’s Early Years Block, funded via the Dedicated Schools Grant, should be regionally adjusted to provide greater support for areas with childcare shortages and high child poverty rates.

2. Community Nursery Support: Public funds should seed co-operative and charity-run nurseries, particularly in "childcare deserts," where market-based provision is insufficient.

3. Workforce Training & Pay Reform: Expansion of training hubs and apprenticeship programs is necessary to address staff shortages. The paper suggests integrating nursery worker salaries into existing teacher pay scales to incentivize workforce retention.

Labour’s childcare reforms are well-intentioned but require significant adjustments to ensure equitable access and sustainable implementation. Without a tailored, regionally sensitive approach, the current proposals risk perpetuating existing inequalities rather than solving them.

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About Leeds Policy Institute

Leeds Policy Institute (LPI) is the UK's first student-run policy unit and think tank based at the University of Leeds. Since its establishment in April 2023, LPI has united over 100 undergraduate and postgraduate students across diverse disciplines to conduct evidence-based, policy-driven research. LPI’s work has been rigorously reviewed by academic experts and presented at national conferences, including the British Conference of Undergraduate Research.

Media Contact:

Joseph Clark

President, Leeds Policy Institute

07592 461606 | bn224jc@leeds.ac.uk

Notes to Editors:

• The full policy paper is available upon request.

• The paper examines the shortcomings in Labour’s childcare reforms and presents policy alternatives for sustainable nursery and breakfast club programs.

• Case studies analyse childcare models from Canada and Europe that have successfully tackled affordability and staffing challenges.

• The LPI is based at the University of Leeds and produces independent, evidence led research to inform UK policy.