Question to the Department for Education:

To ask the Secretary of State for Education, with reference to paragraph 3.15 of the Spring Budget 2024, HC 560, what weighting was given to (a) average earnings growth, (b) changes in the National Living Wage and (c) the (i) consumer price index and (ii) other measures of inflation when estimating that there would be £500 million of additional funding in the 2025-26 and 2026-27 financial years.

The last economic data available at the time funding rates are set will be used to determine the proportions allocated in the 2025/6 and 2026/7 financial years.

The department estimates the changing costs to providers by using the annual results of the Survey of Childcare and Early Years Providers and the department’s cost pressures model, which also takes account of the different ages of children, as both reported staff-child ratios and the relative proportion of entitlement hours delivered by different provider types vary by child age. Separate calculations are therefore performed in respect of the different entitlements.