Question to the Department for Education:

To ask the Secretary of State for Education, if she will make an assessment of the adequacy of the rates paid to providers for free hours childcare and early years education.

Current national average funding rates for local authorities are broadly in line with, or higher than, nursery fees paid by parents last year. However, the department is taking concerns from the early years sector very seriously and wants to ensure that the sector is financially sustainable going forward. Budgets for 2025/26 are still to be agreed at the autumn Spending Review. This includes the 2025/26 early years budget which the department will need to agree across government. The department knows how important these decisions are to local authorities and providers, and is working across government to take them as soon as practicably possible.