Funded twos: 85 per cent have a place, but sector warns figures don't paint full picture

Data published today by the Department for Education shows that 247,514 two-year-old codes for the funded 15 hours have been issued. Of these, 211,027 were validated by early years providers or local authorities by 2 May – equivalent to 85 per cent of all those generated.

It comes as parents can apply for the 15 hours for children from nine months old from Sunday (12 May).

While the DfE has said previously it does not expect 100 per cent of codes to be validated as parents change their mind or may have been issued a code when they didn't need one, findings from Nursery World's recent survey suggests providers are struggling to meet demand for the new offer.

Our findings highlight how providers are struggling to meet demand for the new two-year-old offer due to a lack of space and staff. More than 60 per cent of the 367 respondents said they had a waiting list for places.

The Early Years Alliance (EYA) stressed once again how the latest figures don't provide detail on whether parents are able to get the days and hours they need without facing 'steep increases for unfunded hours alongside this'.

Chief executive Neil Leitch added, 'Given that the sector continues to face severe capacity challenges, we at the Alliance remain entirely unconvinced that this is the case. 

'Today’s update on the early entitlement expansion rollout once again proves that it is impossible, and frankly misleading, to judge the success of a policy by headline figures alone'.

'It has never been more urgent for the Government to not only recognise the scale of the challenge facing the sector but the need to work with providers to ensure they can sustainably meet demand in the long-term. Instead, once again, ministers have instead chosen to ignore the reality of the situation facing providers and families and trot out figures which paint an entirely incomplete picture.'

The National Day Nurseries Association said it knows from its research, and other surveys, that not all providers are able to meet their local demand for place, which means parents can’t always get the places they want or need.

Children and families minister David Johnston, said, ‘As today’s figures show, 211,027 two-year-olds are already benefitting from the first stage of our huge expansion of childcare – giving parents a helping hand in their working lives, safe in the knowledge their children are well looked after by our brilliant early years workforce.’

Extended entitlement for nine-month-olds

The updated figures come ahead of applications opening for the second phase of the funded offer on Sunday (12 May) – 15 hours from the age of nine months.

Under the final phase of the entitlement, support will increase to 30 hours of funding for children from nine months up until they start school, which the DfE estimates will save families an average of £6,900 a year. This figure has previously been put into question by campaign group Pregnant Then Screwed, arguing that parents will benefit less financially due to providers increasing fees and adding additional charges to cover historic underfunding of places.

The DfE estimates that 15,000 additional places will be needed for this September, along with 9,000 extra staff.