Question to the Department for Education:

To ask the Secretary of State for Education, if she will review funding levels for the care of 2 year old children.

The Prime Minister has committed publicly to an uplift in funding rates for early learning places, which includes an uplift in funding levels for two year olds who are eligible for 15 hours of free early learning each week. An announcement was made in the November 2015 Autumn Statement indicating that a generous uplift would be made in the funding that early years providers will receive from April 2017. As a result of this extra investment the new national average rates will increase from £4.56 to £4.88 for three and four year olds (including the Early Years Pupil Premium) and from £5.09 to £5.39 for two year olds. The new funding amounts to an additional £300 million per year from 2017-18.

The government is committed to making funding for the early years fairer. That’s why the government conducted its Review of childcare costs: call for evidence consultation between 15 June 2015 and 10 August 2015, to determine a rate of funding that is sustainable for providers and delivers value for money to the taxpayer. The findings of this review provided the government with vital evidence which has helped to inform the proposed increase in funding rates from 2017/18. We will consult on the proposed new funding allocation system shortly.