Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the adequacy of the funding provided to early years providers for meeting the cost of a nursery place.

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, 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 2024/25 financial year, equivalent to up to £570 per eligible child per year.

In addition, the department is providing £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. We are also providing £25 million of funding to support public sector employers with increased National Insurance contributions through the early years National Insurance Contributions grant.