Question to the Department for Education:

To ask the Secretary of State for Education, what steps she is taking to support early years childcare providers with their funding arrangements.

The government has been clear in our commitment to the early years. It is our ambition that all families have access to high-quality, affordable and flexible early education and care, improving the life chances for every child and the work choices for every parent. That also means ensuring the sector is financially sustainable and confident as it continues to deliver the entitlements and high-quality early years provision going forward.

That is why, despite tough decisions to get our public finances back on track, this government has increased investment in the early years to drive forward progress towards our Plan for Change target of a record number of children starting school ready to learn. This government will continue to prioritise and invest, supporting early education and childcare providers with the costs they face.

In the 2025/26 financial year alone, the department plans to spend over £8 billion on early years entitlements. We announced the largest ever uplift to the early years pupil premium, increasing the rate by over 45% compared to 2024/25 financial year, equivalent to up to £570 per eligible child per year. On top of this we are providing further supplementary funding of £75 million for the early years expansion grant to support the sector as they prepare to deliver the final phase of expanded childcare entitlements from September 2025, recognising the significant level of expansion needed and the effort and planning this will require.

The department is also providing £25 million through the forthcoming National Insurance Contributions Grant for public sector employers in the early years.