The Labour Party has pledged to increase free childcare places for three- and four-year-olds from 15 to 25 hours a week if it wins the general election in May, and plans to pay for the expansion by raising £800m with an increase in the bank levy each year.
However, speaking at a parliamentary reception hosted by the National Day Nurseries Association (NDNA) yesterday, Gyimah said he expects the expansion to cost £1.6bn annually.
“Based on the numbers that I have seen, extending the free entitlement from the current 15 hours to 25 hours – not adjusting for inflation or any increase – could cost about £1.6bn,” he said.
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