Question to the Department for Education:

To ask the Secretary of State for Education, what assessment her Department has made of the potential impact of low pay on early years childcare sector recruitment.

The department recognises the concerns the sector has about workforce recruitment and retention challenges. The department continues to work closely with the sector to understand these challenges. Early education and childcare is delivered by a mixed market of private, voluntary and independent provision who set their own rates of pay.

The department is uplifting funding rates to support providers in dealing with the costs they face, including staffing costs. Current national average funding rates are broadly in line with, or higher than, nursery fees paid by parents last year. For 2024/25, this includes an investment of £67 million to reflect the increase in the National Living Wage from April 2024. Local authorities are required to pass through a minimum of 95% of the funding to early years providers.