Question to the Department for Education:

To ask the Secretary of State for Education, whether she has made an assessment of the potential impact of changes to early years funding on social enterprise nurseries following the changes to National Insurance Contributions.

It is our ambition that all families have access to high quality, affordable and flexible early education and care, giving every child the best start in life. This is key to the government’s Plan for Change, which starts with reaching the milestone of a record number of children being ready for school. That also means ensuring the sector is financially sustainable and confident as it continues to deliver 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 in supporting early education and childcare providers, including social enterprise nurseries, 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 a further £75 million through 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.

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