Question to the Department for Education:

To ask the Secretary of State for Education, what steps she is taking to ensure the sustainability of funding for maintained nursery schools.

​My right hon. Friend, the Secretary of State for Education has been clear in her commitment to early years. Despite tough decisions to get our public finances back on track, this government has increased investment in the early years sector to drive forward progress towards our Plan for Change target of a record number of children starting school ready to learn.

In the 2025/26 financial year alone, this government plans to spend over £8 billion on early years entitlements. The department has also announced the largest ever uplift to the early years pupil premium, increasing the rate by over 45% compared to the 2024/25 financial year, raising it to the equivalent to up to £570 per eligible child per year.

On top of this the department is providing further supplementary funding of £75 million for the early years expansion grant to support the sector to provide the additional places and workforce needed by September 2025.

The department is also providing £25 million through the Employer National Insurance Contributions Grant for public sector employers in early years, which includes maintained nursery schools (MNS).

As part of the overall early years budget, the department expects to spend £92.6 million in MNS supplementary funding in the 2025/26 financial year, in recognition of the additional costs MNS face. The national average hourly rate for MNS supplementary funding will increase from £5.27 in the 2024/25 financial year to £5.90 in the 2025/26 financial year.

The department has introduced a minimum and maximum hourly rate that a local authority can receive for their MNS to create a fairer distribution of funding. For 2025/26, the supplementary funding minimum hourly rate for MNS will be set at £5.27.

MNS supplementary funding is just as secure over the long term as all the other early years funding streams.