Children: Day Care

(asked on 11th July 2017) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, if she will make an assessment of the effect of the Government’s 30 hours free childcare policy on the financial viability of childcare providers.


Answered by
Robert Goodwill Portrait
Robert Goodwill
This question was answered on 17th July 2017

The Government is investing £1 billion extra every year for the early years entitlements, including over £300 million a year to increase local authorities hourly funding rates. Local authorities are required to pass the vast majority of their funding on to early years providers so that they can deliver the 30 hours of childcare for working parents and other entitlements on a sustainable and high-quality basis.

The Government’s increased level of funding is based on the “Review of Childcare Costs” which looked at both the current costs of childcare provision and the implications of future cost pressures including the National Minimum Wage and the National Living Wage. Recent research conducted by Frontier Economics, calculated the average hourly costs of providing childcare for three and four year olds, and the Government’s new funding rates compare very favourably to these.

We will keep under review the data underpinning the new Early Years National Funding Formula, which is used to distribute funding for the early years entitlements.

The Government is also providing guidance, tools and support for providers to help make their businesses more financially sustainable and operate efficiently.

Reticulating Splines