Many providers to receive £5 or less per hour for funded places
Katy Morton
Wednesday, September 6, 2023
Despite DfE claims that childcare settings will now receive a ‘boost’ in funding rates (as of last week - 1 September), many providers say they are to receive £5 or less per hour for three and four-year-old places.
In a release sent on Friday (1 September), the Department for Education (DfE) said ‘nurseries and childminders up and down the country will be paid more for every Government funded hour they provide to parents.’
It goes on to state that hourly funding rates paid to local authorities have increased from an average of £5.29 to £5.62 for three and four-year-olds, and from an average of £6.00 to £7.95 for two-year-olds.
However, many providers on Facebook have said that the rate they will actually receive to deliver funded three and four-year-old places is £5 or less per hour.
One user on Nursery World’s Facebook page said in Cumbria they are to receive less than £5 per hour. Another in Bury, Greater Manchester said they will get £4.87 per hour.
In Lancashire, providers can expect £5.08 per hour.
The payments do not include the Early Years Pupil Premium (EYPP) or Disability Access Fund (DAF) for those children who are eligible.
A thread on the Champagne Nurseries Facebook page in July similarly revealed that many providers across the country won’t receive more than £5 per hour for three and four-year-olds, including in Devon where the funding rate is going up by 7 per cent to £4.90ph. In Cheshire East, providers will receive £4.81 and Nottingham City, £5ph.
For two-year-old places, many providers on Champagne Nurseries said they are due to receive more than £7 per hour.
'This funding increase is another vital step in this Government's work'.
In a release from the Department for Education (DfE) last week, the new children’s minister David Johnston said, ‘This funding increase is another vital step in this government’s work with the early years sector to deliver the flexible, affordable, and quality childcare that parents need.
‘With yet another increase in funding coming next year, we are committed to supporting nurseries, childminders and everyone working with children in their vital early years to deliver on our biggest ever investment into childcare in England – set to save a working parent using 30 hours of childcare up to an average of £6,500 per year.’
The National Day Nurseries Association (NDNA) said that the funding boost described by the DfE is still 'insufficient' to keep nurseries sustainable.
A spokesperson for the NDNA explained, 'Despite the DfE announcing a funding ‘boost’ to childcare the investment in three and four-year-old places is still insufficient to keep nurseries sustainable. Currently nurseries have around ten times more three and four-year-old children, so these are the rates that have the biggest impact on providers.
'Investment in early years education is needed now to give providers the necessary support to address the spiralling costs they’re facing and prevent more nurseries from closing.'
