Nursery World - Early years funding: minimum rate 'still not enough'

Concerns have been raised by the early years sector that even with the increase in funding rates, many settings won’t be able to deliver 30 hours of free childcare sustainably.

Earlier today, the Department for Education announced a new early years funding formula which will see early years settings receive a minimum of £4 per hour to deliver the three -and four-year-old places for the Government's 30-hour free childcare policy. Currently some settings receive less than £4 an hour.

As part of the announcement, the DfE revealed it is reinstating the quality supplement and providing extra funding for children with special educational needs and disabilities.

While early years organisations have welcomed the additional investment, they argue it still isn’t enough to cover the cost of providing the places as the minimum rate and funding allocations are set to flatline from 2017. At the same time, nurseries are facing above-inflation wage increases, driven by the National Living Wage, and a rise in business rates next year.

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