Today the Department for Education (DfE) has confirmed further increases to funding rates to deliver the expanded entitlement, and announced that parents who will be eligible for the first phase of the rollout will be able to apply for a funded place for their two-year-old from 2 January 2024.
The new rates are the amount of money local authorities will receive on average from April 2024, not providers.
While the DfE claims the rates ‘reflect the increase in the National Living Wage from next April’, many in the sector have argued that the new rate for three and four-year-olds continues to fall short of what is actually needed by providers.
'The sector cannot run on goodwill and warm words'.
Early Education’s chief executive Beatrice Merrick said they are ‘concerned’ that the funding rates for three and four-year-olds, who take up the ‘bulk of provision and determine the viability of the entire sector’, are only increasing in line with inflation.
She warned that the ‘sector cannot run on goodwill and warm words’, and that the ‘real cost’ of delivery needs to be funded by Government.
The National Day Nurseries Association (NDNA) said the new rates 'show the Government is not serious about paying a fair rate for high-quality early education and care.' According to the NDNA, the National Living and Minimum wages are rising by 10 per cent, but childcare funded places are increasing by less than 5 per cent. At the same time, the Early Years Pupil Premium is only rising by 2p per hour or just over £11 a year, it said.
The Early Years Alliance, which last week published an open letter urging the Government to inform providers the amount of funding they will receive for the extended 30 hours policy, said that settings remain ‘in the dark’ on their final rate, making it impossible for them to prepare for the expanded offer, ‘at a time when many will be receiving a deluge of parent enquiries’.
Chief executive Neil Leitch called the policy a ‘perfect example of an announce first, think later approach that Government continues to take when it comes to early years.’
'Government's commitment rings hollow.'
The Liberal Democrats said that the Government’s childcare commitment ‘rings hollow’, when there are not enough providers to go around already.
Education secretary Gillian Keegan said, ‘Our fantastic childcare offer is going to start supporting eligible families in less than six months’ time, and I want to make sure that parents and providers are prepared.
‘I know the delivery of this transformation is no easy task, which is why I am pushing ahead with increased funding rates across the country and up to £1,200 for new childminders, knocking down barriers to recruiting and retaining the talented staff that provide such wonderful care for our children.’
Childminder grants
From tomorrow (Thursday 30 November) new childminders who join the profession, those who completed their registration on or after 15 March 2023, or those registering at least 12 months after the cancellation of a previous Ofsted registration, will be eligible for a start-up grant. Under the scheme, childminders who register independently with Ofsted will receive £600, and those who sign up with a childminder agency will receive £1,200.
Expanded offer timeline
- 1 April 2024: 15 ‘free’ hours for working parents of two-year-olds comes in.
- September 2024: 15 ‘free’ hours for working parents of children from nine months old to the start of school.
- September 2025: 30 ‘free’ hours for working parents of nine months to the start of school.
