LABOUR accused the government today of “serial incompetence” after it was revealed that it underspent on tax-free childcare support for parents in work by at least £1.7 billion over the last three years. 

The new Department for Education figures were revealed in response to a written parliamentary question from Tulip Siddiq, shadow minister for children and early years.

Just one in six parents who were eligible for tax-free childcare support have claimed it, HMRC data published earlier this year found. More families would have benefited if they had been aware of the scheme and how to use it.

Half of parents of children under five told researchers that the government has not done enough to publicise the scheme and support parents in accessing childcare during the pandemic, according to a survey by the Early Years Alliance in August.

And more than half (51 per cent) of mothers surveyed in July by campaign group Pregnant Then Screwed said that they did not have adequate childcare in place to allow them to do their jobs.

The government plans to spend £2.1bn more on the scheme until 2024 but still has “no credible plan” for ensuring every family eligible benefits from the support, Labour says.

Ms Siddiq said: “With around half of parents struggling to access childcare and the sector on the brink of collapse, it beggars belief that ministers have repeatedly failed to get support to every family who needs it.”

There were 14,000 fewer childcare providers in England in March this year than in March 2015, and the total number declined by 500 in the first three months of this year, Ofsted statistics show.