Question to the Department for Education:

To ask the Secretary of State for Education, what support her Department is providing to early years providers in the private sector to mitigate the impact of increases to employer National Insurance contributions.

It is the government’s 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 public finances back on track, the government is continuing 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 have 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, 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 as it prepares 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. An additional £25 million is also being provided to public sector employers through the early years National Insurance contributions grant for 2025/26.

Early years childcare providers may also benefit from the Employment Allowance. Employment Allowance is being increased to protect businesses by providing relief of up to £10,500 per annum on their employer Class 1 National Insurance contributions liabilities from 6 April 2025. Early years childcare providers are entitled to claim the Employment Allowance if they are private businesses or charities and the department expects the vast majority will be eligible to do so.