Asked by: Lord True (Conservative - Life peer)
Question to the Department for Education:
To ask Her Majesty’s Government, for each financial year from 2015–16 to 2020—21, what are the estimated annual costs of providing (1) free childcare for two year-olds, (2) 15 hours of free childcare per week for three and four year-olds, and (3) 30 hours of free childcare per week for three and four year-olds of working parents.
Answered by Lord Nash
Allocations made to local authorities for 15 hours of free childcare per week for three- and four- year-olds totalled £2.2 billion in 2015-16. Allocations in 2015-16 for 15 hours of free childcare per week for disadvantaged two year-olds will be announced shortly.
The government is committed to raise the average hourly rate providers receive from the introduction of the new entitlement from 2017-18. The government is undertaking a review of childcare costs in order to set a new average hourly rate that is fair for providers and delivers value for money for the taxpayer.
Until this review is complete, it is not possible to estimate annual costs of providing free childcare for two year-olds, or 15 hours of free childcare per week for three-and four-year-olds after 2016.