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Early Years Education Funding

21 July 2021

Lead MP

Wera Hobhouse
Bath
Lib Dem

Responding Minister

Gillian Keegan

Tags

Social CareEducationEconomyTaxationEmploymentBusiness & TradeChildren & FamiliesLocal Government
Word Count: 4075
Other Contributors: 2

At a Glance

Wera Hobhouse raised concerns about early years education funding in Westminster Hall. A government minister responded.

Key Requests to Government:

The Government should prioritise the early years sector for investment in the upcoming comprehensive spending review and commit to a catch-up premium of £2,964 per child per year under the 70 hours entitlement. A meaningful multi-year funding settlement is needed to simplify the funding system, improve uptake of funded places, and support children with special educational needs.

How the Debate Unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said:

Lead Contributor

Bath
Opened the debate
The early years sector is experiencing a serious shortfall in funding. Providers are struggling to break even, with 80% of childcare settings unable to deliver services at the local authority funding rate. Closures have increased by 35%, affecting more than 11,000 children's places and disproportionately impacting deprived communities. Staff retention rates are low due to insufficient wages, making it difficult for providers to hire qualified staff. Parents face some of the highest childcare costs in Europe.

Government Response

Gillian Keegan
Government Response
It is a pleasure to serve under your chairmanship, Ms Fovargue. I congratulate the hon. Member for Bath on securing this debate and discuss the importance of early years education in developing cognitive, social, and emotional skills in children. Nurseries, childminders, teachers, and parents have supported and educated our youngest children throughout the pandemic. The Government invests heavily in high-quality childcare through the universal 15 hours of free childcare for all three and four-year-olds, plus an additional 15 hours for working parents. In 2019, 71.8% of children achieved a good level of development at the end of the early years foundation stage profile compared to 51.7% in 2013—a remarkable achievement. The Government has spent over £3.5 billion annually on early education entitlements and increased hourly rates paid to childcare providers through an extra £44 million announced last year, ensuring no council receives less than £4.44 per hour for the three and four-year-old entitlements. Funding aligns with attendance data provided by local authorities, providing reassurance to providers. The Government has also provided significant support during the pandemic through business support packages, including access to the coronavirus job retention scheme, business rates discounts, recovery loans, and extensions of self-employment income support schemes. Additionally, there is investment in T-levels to provide a skills pipeline for the early years sector and funding for training staff to support children's learning and development, with £27 million allocated to support early language development through the Nuffield Early Language Intervention programme. The number of places available for parents seeking childcare has remained broadly stable since August 2015, despite challenges posed by the pandemic.
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About Westminster Hall Debates

Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.