Bridget Phillipson has announced a review of free childcare eligibility thresholds, including the £100,000 income cap that has remained frozen since 2017.
The review comes as Government expenditure on early years entitlements reaches £9billion annually, with the Education Secretary stating the system should be simplified for parents.
Ms Phillipson said: "We are going to continue to look at eligibility through the childcare review that we're undertaking, and it does need to be simpler for parents."
She told the Financial Times "every element" of the childcare framework would be examined to ensure value from public investment.
Government officials have indicated any changes to thresholds are not expected in the immediate term and would form part of a broader assessment of childcare provision.
Under the current rules in England, families must meet specific earning criteria to access the extended 30-hour childcare entitlement.
At least one parent must earn the equivalent of 16 hours per week at the minimum wage to qualify for the funded provision.
At the upper end, neither parent’s adjusted net income may exceed £100,000 per year, at which point the entitlement is withdrawn.
Bridget Phillipson says 'childcare system must be simpler for parents'
|GETTY
These thresholds have remained unchanged since their introduction under the previous Conservative administration nine years ago.
Since September 2025, eligible working households have been able to claim 30 hours of subsidised childcare from the term after their child turns nine months old until school age.
The policy was designed to support economic growth and enable parents to return to work sooner after having children.
For households close to the £100,000 threshold, small increases in earnings can result in a loss of support that outweighs additional income.
LATEST DEVELOPMENTS
Some parents have been refused bonuses due to the financial impact of losing childcare entitlement
|GETTY
The £100,000 threshold also aligns with the point at which the tax-free personal allowance begins to taper, creating a marginal income tax rate of 60 per cent for those earning between £100,000 and £125,140.
Speaking at a primary school in north London, Ms Phillipson acknowledged the complexity of the current system.
She said: "There are many quirks that exist, that have developed over the course of the last decade or so as different elements of childcare support have been added into the system.
"It does make sense to make that more coherent, more straightforward, both for the sector but also for parents too."
Labour has committed to creating 100,000 additional childcare places and more than 3,000 new nurseries
|GETTY
Ministers recently redirected a £400million programme to focus on England’s most disadvantaged areas after data showed childcare provision is concentrated in locations where children are less likely to be school ready.
Sir Keir Starmer’s administration has set a target for 75 per cent of five-year-olds to reach school readiness standards by the end of the current Parliament in 2029.
Currently, just over 68 per cent of children meet these benchmarks when starting reception, with only four of 152 local authorities achieving the Government’s target.
A ministerial spokesman confirmed the eligibility review forms part of the wider early years strategy, with changes not expected imminently.
Our Standards: The GB News Editorial Charter