Childcare: Finance

(asked on 19th December 2022) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, if she will take steps to increase the funding rate for the 15 hours of free childcare for 3 and 4 years olds.

Answered by
Claire Coutinho Portrait
Claire Coutinho
Secretary of State for Energy Security and Net Zero
This question was answered on 9th January 2023

In the 2021 Spending Review, the department announced additional funding for early years of £160 million in 2022/23, £180 million in 2023/24 and £170 million in 2024/25, compared to the 2021/22 financial year.

The department has recently announced that we will invest an additional £20 million into early years funding in 2023/24, on top of the additional £180 million for 2023/24 announced in the Spending Review. Taken together, this will help support providers at a national level with the additional National Living Wage costs associated with delivering the free childcare entitlements next year.

With this additional £20 million investment, in 2023/24 local authorities are set to receive average funding increases of 3.4% for the 3- and 4-year-old free childcare entitlements and 4% for the 2- year-old entitlement, compared to their 2022/23 rates.

The department will increase the Early Years Pupil Premium, which for 2023/24 will provide up to £353 per eligible child per year to support better outcomes for disadvantaged 3- and 4-year- olds, and also the Disability Access Fund, which will be worth at least £828 per eligible 3 – 4-year-old child per year. We will also be investing an additional £10 million into Maintained Nursery School supplementary funding from 2023/24.

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