In its response to the Treasury Committee’s report on childcare, which was published in March and strongly recommended an increase in 30 hours funding rates to reflect current costs, the Department for Education (DfE) states it is ‘confident that the Early Years National Funding Formula is allocating funding fairly and transparently.’
The report by the Treasury Committee, which is chaired by former education secretary Nicky Morgan MP, argued that funding for the 30 hours is based on out-of-date wage data from 2013 and rent and other overhead costs from a survey carried out in 2012.
it also said that the committee has not seen any evidence to justify that increases in the National Living Wage have been factored into the hourly rates provided by Government to local authorities and childcare providers.
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