Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the impact of the indicative early years funding allocations on workforce recruitment and retention in early years settings.

The early years workforce is at the heart of the government’s mission to give every child the best start in life and deliver our Plan for Change. Our Best Start in Life strategy sets out how we are improving the quality of early education by investing in training and qualifications, increasing understanding of high quality practice and providing more access to proven, evidence-based early years programmes. The latest early years census data reports a 7.2% increase in the number of workers between 2024 and 2025, to 272,500 staff. This represents an increase of 18,200 workers and is the biggest increase we have seen since the data became available in 2018, likely driven by the expanded entitlements.

We know from listening to the sector and our own regular research, that the cost of delivery is highest for younger children due to tighter staffing ratios and, consequently, higher staff costs, as staffing makes up the most significant proportion of provider costs. Our funding rates are set to reflect this with government funding rates for younger children remaining significantly higher than typical parent-paid fees.

For 2026/27, the national average funding rate is £12.04 for under twos, £8.90 for two-year-olds, and £6.42 for three to four-year-olds, compared to average parent-paid fees from last year of £7.18, £7.09, and £6.78 respectively. Combined with the increase in hours through the expansion, these higher funding rates for younger children mean substantially more investment is flowing into the early years sector with an expected £9.5 billion being provide for the early years in 2026-27.