Context
The question stems from concerns expressed by childcare providers about inadequate funding and clarity on the government's plans. Providers are worried that increased free hours may not translate into better financial support.
Question
I recently visited the outstanding Laurels Childcare Company in Durham to listen to its concerns about childcare funding. Such providers are crying out for clarity on the Government's plan. More free hours must not mean more underfunded hours. The Government admitted in 2020 that it costs £7.49 to deliver an hour of free childcare for a three-year-old, yet in September providers will be paid just £5.50 for those hours. Can the Minister tell me why?
Answer from Claire Coutinho
We conducted a survey of 10,000 different providers and used that feedback to set out the funding rates. For two-year-olds, we have increased the rate by 30% because it is higher for this age group. We have announced the single biggest investment ever in childcare with £8 billion over four years.
Not addressed: The specific discrepancy between actual costs and funding rates was not directly addressed.
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