According to a survey of more than 7,000 parents in England, 84 per cent of families have used some form of childcare. But the percentage using formal childcare was 54 per cent - a drop from 57 per cent in 2004.
More than 35 per cent of parents still think childcare in their local area is too expensive. Families with lower household incomes were less likely to use formal childcare, meaning the most disadvantaged children could still be missing out.
Nearly half of all families had used grandparents to care for children. One fifth used other relatives and a further fifth used friends and neighbours.
"Cost remains an important barrier to the use of childcare for some parents," the report said. "The evidence suggests overall that the ten-year childcare strategy has not had as much impact as intended, particularly in relation to the most disadvantaged children."
The study was carried out by the National Centre for Social Research on behalf of the Department for Children, Schools and Families.
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