However, sector organisations have warned that the increase of just under 4 per cent - while larger than previous increases – does not do enough to compensate for historic underfunding and will not cover statutory rises to the National Minimum and Living Wage, the re-introduction of business rates, and other rising costs.
The increase is also lower than inflation, which is currently running at 4 per cent.
More than 40 areas with the lowest funding rate of £4.44 – will receive an increase of 3.8 per cent - which means that their rates will rise to £4.61 in April 2022.
While the DfE has today (Thursday) confirmed the hourly funding rates for the free early education entitlements in 2022-23 for each local authority, the final rates that early years providers will receive will be confirmed to them by individual councils.
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