Childcares: Finance

(asked on 20th May 2025) - View Source

Question to the Department for Education:

To ask the Secretary of State for Education, what steps she is taking to ensure that it is financially viable for childcare settings to offer places to three and four year-old children.


Answered by
Stephen Morgan Portrait
Stephen Morgan
Parliamentary Under-Secretary (Department for Education)
This question was answered on 27th May 2025

In 2025/26 alone, we plan to provide over £8 billion for the early years entitlements, a more than 30% increase compared to 2024/25. We have announced the largest ever increase to Early Years Pupil Premium since its introduction and will also deliver a significant tranche of supplementary funding of £75 million through the Early Years Expansion Grant.

We are increasing core funding rates. For 2025/26, the national average three and four-year-old hourly funding rate of local authorities is increasing by 4.1%, two-year-old hourly funding rate is increasing by 3.3%, and nine months to two-year-old hourly funding rate is increasing by 3.4%.

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