Stuart Anderson MP has welcomed a cash boost for local childcare providers. The Government has announced additional funding for local authorities to increase the amount of funding paid to childcare providers for delivering the existing childcare entitlement offers. It will see childcare providers in Wolverhampton receive a 6% increase to hourly childcare payments for children aged three to four, and a 29.6% increase to hourly payments for two-year-olds. It is part of a new standalone top-up grant called the Early Years Supplementary Grant (EYSG).
Stuart has endorsed the funding increase, which will take the average rate paid for places for three and four-year-olds from £5.29 to £5.65 per hour, and the average rate paid for places for two-year-olds from £6.00 to £7.95 per hour. Overall, the Government will be investing £204 million of additional funding in 2023-24 and £288 million in 2024-25 to uplift the rates for existing entitlements from September 2023. It is part of plans to oversee the largest-ever expansion of free childcare, including providing all parents of primary school children access to childcare in their local area between 8am and 6pm.
From April 2024, working parents of 2-year-olds will be able to access 15 hours of free childcare per week (over 38 weeks a year). From September 2024, this will be extended to parents of 9 month to 3-year- olds. From September 2025, working parents of 9 month to 3-year-olds will be able to access 30 free hours per week (over 38 weeks a year). By 2027-28, the Government expects to be spending in excess of £8 billion every year on free hours and early education - helping working families with their childcare costs. A further £12 million is also being given to local authorities this financial year to support them to effectively roll out the new offer. Further information on the childcare offers available to parents can be found at: www.childcarechoices.gov.uk.
Stuart Anderson MP said: “Childcare providers in Wolverhampton play an integral role in supporting our communities. I am delighted that they will see their hourly payments increase for the children they look after. This funding is a vital boost for the sector as we kickstart the delivery of the largest ever expansion of childcare, including 30 hours free childcare to all under four children by 2025. By making childcare more accessible, more parents will be able to help grow the economy.”
Chancellor of the Exchequer, Jeremy Hunt said: “I know the cost of childcare can be a real struggle for parents and can become a barrier to work. That’s why we announced the largest ever expansion of free childcare at Spring Budget, and today we’re increasing hourly funding rates to make sure the system is ready to deliver, including uplifting rates for a two-year-old by a third. These reforms will be transformative, and ensure that we build a childcare system comparable to the best.”