- £204 million cash boost given to nurseries to support the
expansion of childcare places
- Sixteen local authorities selected to deliver landmark
primary school childcare provision for every family between 8am
and 6pm
- Part of government’s largest ever investment in childcare –
to support more parents to return to work and help grow the
economy
Nurseries are set to receive a £204 million cash boost as part of
the Government’s promise to deliver the largest ever investment
in childcare.
The plans, which were announced in the Spring Budget, are
designed to remove significant barriers to support parents to
return to work and help to grow the economy by making childcare
more accessible.
Every area across the country is getting a share of the
Government funding which childcare providers can use to ease cost
pressures such as staffing costs, training and bills. Funding
rates per child paid from September will increase from an average
of £5.29 to £5.62 for three and four-year-olds, and from an
average of £6.00 to £7.95 for two-year-olds.
The increase in funding will support the early years sector to
deliver the biggest investment in childcare ever.
From April 2024, eligible working parents of two-year-olds will
get a new offer of 15 free hours per week of free childcare. From
September 2024, eligible parents will get 15 free hours from nine
months until their children start school, and from September
2025, they will get 30 free hours from nine months until the
start of school.
Separately, the Government has today confirmed plans to deliver
its ambition for all parents of primary school aged children to
access childcare in their local area between 8am and 6pm.
16 local authorities from Barnsley to Wiltshire have been
selected to work with the Government to develop plans for this
universal provision, with some of these areas expected to be the
first to rollout the wraparound care as early as summer 2024.
All local authorities will start to receive their share of £289
million in funding from January 2024 to support their delivery of
the programme, with parents expected to see an expansion in the
availability of wraparound care from September 2024.
Chancellor of the Exchequer, said:
“I know the cost of childcare can be a real struggle for parents
and can become a barrier to work.
“That’s why we announced the largest ever expansion of free
childcare at Spring Budget, and today we’re increasing hourly
funding rates to make sure the system is ready to deliver,
including uplifting rates for a two-year-old by a third.
“These reforms will be transformative, and ensure that we build a
childcare system comparable to the best”.
Education Secretary, said:
“Today is a great step forward as we deliver on the largest ever
expansion of childcare which will be transformational for working
families and will help grow our economy.
“I want childcare to be truly affordable and available when and
where parents need it.
“This initial investment of over £200 million will go a long way
in supporting the fantastic early years sector to prepare for the
expansion of free childcare hours available to parents next
year.”
There will be further funding increases in the amounts paid to
local authorities to pass to providers for delivering the
Government’s free childcare places moving forward, with an
additional investment of £288 million already announced at the
Spring Budget for 2024-25.
The Department will shortly launch a consultation on how the
funding for the new entitlements in 2024-25 will be distributed,
to make sure it remains fair in light of the radically expanded
free childcare offers.
A further £12 million is also being given to local authorities
this financial year to support them to effectively roll out the
new offer.
ENDS
Notes to editors
- The local authorities selected to be part of the primary
school wraparound childcare co-design process are:
- Barnsley
- Blackburn with Darwen
- Cambridgeshire
- Central Bedfordshire
- Cornwall
- Dudley
- Gateshead
- Hampshire
- Hartlepool
- Kingston upon Hull, City of
- Merton
- Newham
- Norfolk
- Nottinghamshire
- Sheffield
- Wiltshire
