Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the potential impact of the rule change preventing nurseries and preschools from charging for additional hours on the financial viability of early years providers; and what steps she is taking to support childcare providers with operational costs.

It is the government’s ambition that all families have access to high-quality, affordable and flexible early education and care, giving every child the best start in life and delivering on our Plan for Change.

The department does not prevent early education and childcare providers from charging parents for hours that are additional to any government funded early education place to which they are entitled. These are a private transaction between parents and their provider.

However, where providers agree to offer early education entitlements places that are funded by the taxpayer, it is a statutory requirement that those places must be available free of charge to parents. This means that mandatory charges associated with entitlements places are not permitted, and this was confirmed by the High Court in February this year. However, as departmental statutory guidance sets out, providers may offer and charge parents for food and extras, such as nappies, on an optional basis.

Next year alone, the department plans to provide over £8 billion for the early years entitlements. This is a more than 30% increase compared to 2024/25.

The government is delivering the largest ever uplift to the early years pupil premium, increasing the rate by over 45% to up to £570 per eligible child per year.

The department has confirmed funding rates for 2025/26 and announced a new £75 million expansion grant to support providers to deliver the additional staff and places required for next September.

A further £37 million of capital funding has been allocated to create or expand 300 school-based nurseries.