Early Years Funding: Hampshire
Debate between Alex Brewer and Alec Shelbrooke(3 weeks, 6 days ago)
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Sir Alec Shelbrooke (in the Chair)
Alex Brewer will move the motion, and then the Minister will respond. I remind other hon. Members that they may make a speech only with prior permission from the Member in charge of the debate and from the Minister. As is the convention in 30-minute debates, there will not be an opportunity for the Member in charge to wind up.
Alex Brewer (North East Hampshire) (LD)
I beg to move,
That this House has considered the adequacy of early years funding in Hampshire.
It is an honour to serve with you in the Chair, Sir Alec. A Hampshire nursery manager recently told me:
“Sometimes the funding arrives so late that we are genuinely worried about making wages.”
That sentence has stayed with me, because it captures something that the national conversation about “free childcare” too often misses. The question is not simply whether Hampshire has enough childcare places on paper. It is also whether every family can access suitable, affordable and high-quality early education and childcare when they actually need it and whether providers have the funding and workforce to deliver that sustainably. Those are two very different questions, and today I want to address them both.
Let us be clear about the scale of the pressure that the sector is under. Providers are being hammered by rising costs: increased employer national insurance contributions, rising energy costs just to keep the lights on, business rates and more. One nursery provider in my constituency of North East Hampshire told me that their liability insurance had risen by 19% this year alone, and that was on top of a 59% jump in business rates.
Department for Education analysis published in May found that on average providers took in just £1.01 for every £1 that they spent in 2025, and nearly half of providers reported income that fell short of covering their costs. I am aware that one nursery in my constituency is required to subsidise the Government’s funded offer by more than £51,000 in this academic year alone. It cannot be right that a sector that is already operating on wafer-thin margins is left to absorb more and more tax rises.