Funded Childcare

Scott Benton Excerpts

Monday 22nd January 2024 Commons Chamber

[David Johnston]

We set our rates by conducting a survey of 10,000 providers, in order to understand the costs they face and set the rates accordingly. Last November, we delayed publishing the rates a bit, in order that we could provide more money to take account of the Government’s near 10% increase in the national living wage. We believe we are getting them right in relation to what people are paying, but if the hon. Lady has particular evidence she would like to send me, I will happily look at it.

[Scott Benton (Blackpool South) (Ind)]

Last Friday, I visited the Butterfly Lodge nursery in Blackpool to hear the concerns of early years providers, many of whom are at breaking point. They welcomed the uplift in funding from April, but they were keen to emphasise that it does not even cover the significant increase in their costs, such as for utilities and the national living wage. What steps are the Government taking to stabilise the sector and prevent early years providers from leaving it altogether?

[David Johnston]

I set out in my statement the additional money that we had given to the sector in the last financial year and this one to help it to meet those cost pressures—that was anchored to the survey of 10,000 providers that I talked about. Again, if the hon. Gentleman wants to send me information, data or specific case studies, I will gladly have a look.