Children: Day Care

(asked on 3rd November 2016) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, what assessment she has made of the extent to which childcare providers meet the full cost of providing Government-funded childcare places through cross-subsidy from users paying for private childcare places in the same childcare setting.


Answered by
Caroline Dinenage Portrait
Caroline Dinenage
This question was answered on 8th November 2016

The government published an assessment of the cost of childcare in 2015, following a thorough review of the evidence. The review is available from: https://www.gov.uk/government/publications/review-of-childcare-costs.

The government has consulted on providing an average funding rate to local authorities of £4.71 per hour for the government funded 3 and 4 year old offer, of which 95% must be passed to childcare providers. This is above the representative costs per hour for 3 and 4 year olds set out in the review of childcare costs. Providers should therefore not need to subsidise government funding to meet the full cost of providing the 3 and 4 year old offer.

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