£2 billion for early years education

Young boy paying with trucks.

£2 billion extra investment is set to be given to early years providers next year, as part of the rollout of 30 hours of government-funded early education starting from next September. This is an increase of 30 per cent compared to funding for early education last year, and brings up total spending to £8 billion.

This is part of the government’s mission to break the unfair link between background and opportunity, and sees them increase access to affordable and high-quality early education, making tens of thousands more children ready to learn at age five by the end of this parliament.

Following the prime minister’s unveiling of his Plan for Change, this funding acts on the mission to have a record number of children — 75 per cent — reaching a good level of development when they start school.

Hourly funding rates for providers offering the government-funded hours will vary between local authorities, which reflects local circumstances. Average rates will rise to £11.54 for under two-year-olds; £8.53 for two-year-olds; and £6.12 for three- and four-year olds. 

Alongside confirming rates, the government also announced a new £75 million expansion grant to be allocated later this year, which will support nurseries, childminders, and other providers to deliver the 35,000 extra staff and 70,000 places required to meet demand for next September. Additional support includes uplifting the early years pupil premium (EYPP), increasing rates by over 46 per cent to up to £570 per child annually, allowing children to be “school ready” by age five.

Secretary of state for education, Bridget Phillipson, said: “High quality early education is the cornerstone of our promise to ensure tens of thousands of children are school ready every year, as part of the government’s Plan for Change.

“Despite the inherited challenges we face, this government will invest in our children’s future to break the link between background and success and build a system that gives every child the best start in life.

“The early years has been my priority from day one, because by giving more children the change to start school ready to go, we transform their life chances, and the life chances of every child in their classroom.”

Sarah Ronan, director of the early education and childcare coalition, said: “We are really pleased to see the government back its Plan for Change with this hugely significant increase to the Early Year Pupil Premium — something that members of the Coalition have long called for.

“A reformed early education and childcare system won’t happen overnight but decisive action on education disadvantage must be the starting point for that work.

“We welcome today’s uplift in the EYPP as a clear sign of the government’s commitment to ensuring that all children get a fair start in life.”

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