Nursery World - Analysis: Doubts raised over the impact of next year's rise in funding

Wage increases, uncertainty over local authority payments for funded hours and the return of business rates, amid other costs, dampen the funding announcement. By Catherine Gaunt

Humpty Dumpty Day Nurseries and Pre-Schools

While the headline-grabbing figures of millions of pounds for an increase to early years funding rates from next April sound impressive, it remains to be seen how much of a difference it will really make to providers after years of underfunding and the fallout from the pandemic.

Sector organisations were quick to welcome the funding rise for three- and four-year-old places – which is substantially more than in previous years – but the real question of course is whether the increase will be enough to keep early years settings afloat.

The final figures confirmed by children and families minister Will Quince were more than initially announced by the Chancellor in his Budget speech. The figures were subsequently clarified by Quince to be £160 million for 2022-23, £180 million in 2023-24 and £170 million in 2024-25.

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