- At the Spring Budget 2023, the Conservative Government announced a whole package of reforms to the childcare sector to help more parents into work to grow the economy.
- These reforms include extending free childcare to all under four-year-olds by 2025, paying Universal Credit childcare support upfront rather than in arrears and substantially uplifting the hourly funding rate paid to childcare providers.
- The Conservative Government has announced local authorities will receive an initial investment of £204 million that will be distributed through a new grant to childcare providers.
Bim Afolami MP has welcomed the news that childcare providers in Hertfordshire will receive a 1% increase to their hourly childcare payments for children aged three to four and a 33% increase to the hourly rate for two-year-olds.
Through a new standalone top-up grant called the Early Years Supplementary Grant (EYSG), local authorities will receive this funding, representing a total of additional £204 million in funding for childcare providers.
It will take the average rate paid for places for three and four-year-olds from its current £5.29 per hour to £5.65 per hour, and take the average rate paid for places for two-year-olds from its current £6.00 per hour to £7.95 per hour.
This funding boost is vital to support the sector as the Conservative Government rolls out record reforms across childcare services, including 30 hours free childcare to all under four children by 2025.
As more families can rely on affordable childcare, parents will be able to take up more work and help grow the economy.
Commenting, Bim Afolami MP said:
“Supporting and expanding our childcare sector means more parents can return to work or progress in the workplace.
“Therefore, it’s great news that Hertfordshire will see their hourly payments increase for the children they look after. Providers will now receive 1% more funding per hour for children aged between three and four years old and 33% more funding for children aged two years old.
“The Conservatives are rightly making sure more parents can rely on affordable childcare, allowing them to take up more work if they wish to – growing their own incomes and helping to grow the economy.”
Commenting, Education Secretary Gillian Keegan 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.”
ENDS
Notes to Editors
- The Conservative Government are extending the provision of 30 free hours of childcare a week to all working parents. Working parents of two-year-olds can access 15 hours per week from April 2024 and from September 2024 all working parents of children aged nine months to three-year-old can access 15 hours per week. From September 2025 all working parents of children aged nine months to four-year-old can access 30 hours of free childcare per week (HM Treasury, News Story, 15 March 2023, link; DfE, Statistics, 7 July 2022, link).
- The Conservative Government are supporting Universal Credit claimants with the cost of childcare. The package of reforms announces the Government will pay Universal Credit childcare costs up front rather than in arrears and will increase the Universal Credit childcare cost maximum amounts to £950 for one child and £1,629 for two children (HM Treasury, News Story, 15 March 2023, link).
- The Conservative Government are rolling out reforms across the childcare sector. Reforms include increasing the hourly rates paid to providers of free childcare to £204 million next year, increasing to £288 million by 2024-25, changing to two-year-old ratios from 1:4 to 1:5 and allowing childminders to care for more than three children under five if some children are siblings, or their own child and introducing childminders grant to support childminders with start-up costs (HM Treasury, News Story, 15 March 2023, link).
