Question to the Department for Education:

To ask the Secretary of State for Education, if she will adjust childcare hourly funding rates to reflect changes to employer NICs.

As announced at Budget, the department expects to provide £8.1 billion for early years entitlements in 2025/26, which is around a 30% increase compared to 2024/25, as we continue to rollout the expansion of the entitlements to eligible working parents of children aged from nine months. The department is looking at what changes announced in the Budget will mean for the early years sector and will announce more details as soon as possible. The Employment Allowance will be worth up to £10,500 for eligible providers, meaning smaller providers may pay no National Insurance at all in 2025/26. We are working at pace to publish funding rates for 2025/26, as we know how important this is for local authorities and providers.