Cost of delivering childcare places increases 20%
By Rachel Lawler
The cost of delivering a funded childcare place has increased 20% since 2018, according to released by the Department for Education (DfE).
The figures come shortly after the DfE revealed that it would increasing the early years funding rates paid to local authorities by just 2% in 2020/21 鈥 and it is not yet clear how this will be passed on to providers.
The Survey of Childcare and Early Years 无码天堂 2019 shows that the average annual cost of delivering childcare for private and voluntary group providers was 拢240,333. This is a 20% increase on the previous year鈥檚 average cost of 拢199,708.
Neil Leitch, chief executive of the early years alliance, said: 鈥淭hese figures show just how woefully inadequate the recently-announced increase in early years funding truly is. With ongoing increases in the national living and minimum wages, the cost of running a childcare business has increased hugely over recent years, and yet government investment into the sector has completely failed to keep up.
鈥淲ith plans to both increase statutory wage requirements and expand so-called 鈥榝ree childcare鈥 offers being mooted by various political parties, it鈥檚 clear that, whoever is successful at next month鈥檚 general election, a significant increase in childcare funding will be needed if the early years is to remain viable and sustainable.
鈥淲e urge every political party to include a commitment to ensure adequate investment into the sector in their election manifesto. With the sector already facing a funding shortfall of 拢662m, and hundreds of providers closing every month, we cannot allow the current situation to continue.鈥
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