Stuart Anderson MP has underscored the importance of investing more in rural childcare provision, after South Shropshire missed out on funding for nursery provision within primary schools. In Stuart's constituency, an estimated 733 families have a child aged 9 months to 2-years-old.
Only half of providers in the West Midlands that applied for the funding had their application approved, although the region accounts for 11% of primary schools. The announcement on 2nd April revealed 300 schools had been awarded a total of £37 million. This is despite 637 applicants having bid for £75.8 million of grant funding that was originally advertised.
The Department has told schools there is "no appeals process" but is "reviewing the application process ahead of any further rounds." Stuart has said the government must proceed with further funding as soon as possible, with rural areas receiving a fair share of support.
Stuart's call comes as Ofsted reports a "disproportionate amount” of childcare deserts in rural areas. The education regulator's report found that a higher-than-average proportion of "childcare deserts" are in rural areas. In England, 12% of local areas are rural. Meanwhile, 18% of deserts are in rural areas.
Stuart's campaign also comes as nurseries prepare for a 1.2% hike in employer's National Insurance Contributions (NICs) from 6th April 2025. This results in an average annual tax increase in excess of £800 per employee.
Meanwhile, the government has reduced the threshold at which companies start making contributions from £9,100 to £5,000. This means businesses will start to pay the tax sooner. Overall, this amounts to a £25 billion tax hike on businesses.
A survey undertaken by the National Day Nurseries Association (NDNA) has found that 96% of nurseries intend to raise their fees by 10% - due largely to the increased statutory employment costs. They stated that these costs will result in nurseries having to pay an extra £2,600 per employee.
In response, Stuart has said that rural areas must not be left behind by the big cities when it comes to allocating funding for childcare. In a letter to the Minister for Early Years, Stuart has said that the government must recognise the extra costs involved in both accessing and delivering childcare in rural areas.
He also referred to Ofsted's commentary, which found that: "childcare providers might be less willing to open in areas with low population densities. This may be due to longer commutes or poor public transport which limit parents’ abilities to access suitable childcare near to where they live."
Stuart Anderson MP said:
"Securing access to affordable childcare can be a real struggle for many families in South Shropshire. As a parent, I know how difficult this can be. So, I am disappointed that South Shropshire has missed out on funding for school-based nurseries. Across the West Midlands, only half of early years providers that applied for the funding have been approved. With more than 700 young families in our constituency, I am adamant that we must not be left behind by the big cities when it comes to allocating funding for childcare. Ministers should recognise the extra costs involved in both delivering and accessing childcare in rural areas like ours. They should proceed with further funding as soon as possible, with rural areas receiving a fair share of support."
