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Reforms expanding the amount of free childcare for parents will be ‘properly and fairly funded’, the UK government said on Friday.
Chancellor Jeremy Hunt announced reforms for England in the budget in March which will allow some families of children as young as nine months to claim 30 hours of free childcare a week.
From April next year, working parents of two-year-olds will be able to access 15 hours of free childcare. This will be extended to working parents of all children older than nine months from September next year.
From September 2025, working parents of children under five will be entitled to 30 hours’ free childcare per week.
The Department for Education said its proposed new funding formula is now out for consultation and provides ‘additional funding for areas of deprivation, helping to support families by making sure all children get the best start in life no matter where they live’.
The increased funding will see the expected average rate paid to local authorities for 2024/25 to be set at £8.17 for two-year-olds and £11.06 for under-twos, the department said.
It added that this makes the government rate for under-twos almost double the average hourly fee of £5.68 charged to parents.
Minister for Children, Families and Wellbeing, Claire Coutinho, said: ‘The education secretary, Gillian Keegan, just announced increases to the amount we pay nurseries and childminders to offer free hours to two-year-olds.
‘Today we’re giving providers further confidence that the largest ever expansion of free hours over the coming months and years will be properly and fairly funded.
‘Working parents can start getting ready for a helping hand with costs from the end of maternity leave right up until the end of primary school, with average savings of £6,500 a year if they use the full 30 free hours for their children.’
The department said the increased rates will ‘help childcare providers invest in training and development opportunities for their staff’.
Final hourly funding rates for local authorities for all age groups for 2024/2025 will be confirmed in the autumn, the department added.
source: PA
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