CHILDCARE risks being available only in affluent areas because recent policy decisions have put severe strain on non-maintained childcare and early education, MPs and peers warn today.

If the current funding gap is not addressed, it risks a situation “where only wealthy families are able to access childcare services,” a formal inquiry by the all-party parliamentary group (APPG) for childcare and early education found.

The early years sector faces an estimated funding deficit of £662 million in 2019/2020 due to rising costs and frozen funding levels, the group also found.

The MPs are calling on the government to use the upcoming spending review to provide urgent financial support to help more low-income parents return to work.

Early Years Alliance chief executive Neil Leitch said that it simply will not be good enough for ministers to respond to the report “by trotting out lines” about record spending, happy parents, or a lack of will from providers to make things work.

“It’s time for them to accept that underfunding is causing a crisis of sustainability in the sector that’s putting downward pressure on quality and forcing up parent fees,” he said.

Children and families minister Nadhim Zahawi claimed the government is providing “significant” childcare support for low-income families.