Question to the Department for Education:

To ask the Secretary of State for Education, pursuant to the Answer of 23 December 2020 to Question 130189, what the evidential basis is for the statement that the increase in early years funding for 2021-22 will pay for a rate increase that is higher than the costs nurseries may face from the uplift to the national living wage in April 2021.

The national living wage will increase by 19p per hour from April 2021.

We have uplifted the funding rates by 8p an hour for 2 year olds and, for the vast majority of areas, by 6p an hour for 3 year olds and 4 year olds.

Ratio requirements for adults working with children in early years settings are set out in the Early Years Foundation Stage framework. Early years settings make their own decisions on how to deploy staff within the ratios, ensuring that children’s needs are met.

The funding rate increase is higher than the costs that nurseries may face from the April 2021 uplift to the national living wage.