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Local authority funding rates confirmed for early years entitlement expansion

On
Nov 29, 2023

by Jess Gibson

The Department for Education today confirmed long-awaited council funding rates for the early years entitlement expansion, due to come into effect in April 2024, as well as new rates for the three- and four-year-old offer. 

From April next year, the national average hourly rates funded by the government for local authorities 鈥 not providers 鈥 will be: 

  • 拢11.22 for under twos 

  • 拢8.28 for two-year-olds  

  • 拢5.88 for three- and four-year-olds 

In the announcement, the DfE stated that these rates 鈥渞eflect the increase in the National Living Wage from April 2024, which makes up a significant proportion of providers鈥 costs鈥. 

The government has also announced that applications for the first wave of the expansion鈥檚 rollout for working parents will open on 2 January 2024. From this point until the end of February, eligible working parents or carers of two-year-olds will be able to register to access the funded hours, which will begin in April 2024.  

From Thursday 30 November, funding will also be available for new childminders who are joining the profession, who completed their registration on or after 15 March 2023, or those re-registering at least 12 months after the cancellation of a previous registration. Those will register with Ofsted will be eligible to receive a start-up grant of 拢600, while those who register with a childminder agency will receive 拢1,200. 

Commenting, Neil Leitch, CEO of the 无码天堂, said: 鈥淲hile any early years funding increases are, of course, welcome, the fact is that the additional support announced today is still likely to fall short of what the sector needs to successfully deliver the 30-hours-expansion in the long term. 

鈥淭his is particularly true of three- and four-year-old offer, where funding rates 鈥 which have long been wholly inadequate 鈥 remain incredibly low. This is likely to push settings who do not, or cannot, offer places to younger children into an incredibly precarious position, meaning that many will struggle to deliver early education and care without passing this funding shortfall onto parents in the form of higher fees. 

鈥淎nd let's not forget that today鈥檚 announcement only covers the rates that local authorities receive. Nurseries, pre-schools and childminders are still in the dark on their final rate, making it impossible for them to prepare for 鈥 never mind deliver 鈥 the expanded offer, at a time when many will be receiving a deluge of enquiries from parents eager to secure their funded places.  

鈥淭he policy is a perfect example of the 'announce first, think later' approach that government continues to take when it comes to early years. With the start of the expansion just months away, it remains to be seen whether there is any hope of this policy actually working in practice."  

Chief Executive of PACEY Helen Donohoe said:  鈥淲e know that the ambitious plans for the expansion of early education and childcare will need to see growth right across our sector, and not least in the number of childminders. 

鈥淲e therefore welcome the launch of the start-up grants scheme, for new and returning childminders, and look forward to working with all providers as more and more parents come on board.鈥欌