£755m to fund free childcare expansion

The funding will pay for the expansion of the free childcare scheme from next autumn and is a third more than the amount given to fund the offer this year.

Under the scheme, the country’s most disadvantaged two-year-olds can receive 15 hours of free childcare from a nursery or childminder each week.

Initially made available to the 130,000 most disadvantaged children, the Department for Education estimates that around 285,000 two-year-olds will be eligible for free childcare from next September.

The amount of funding provided to local authorities has been based on a national average cost of £5.09 per hour per child. It will be provided to councils on a "use it or lose it" basis, meaning the funding local authorities receive will depend on the number of children taking up the offer.

Currently, children are only eligible for the scheme if their parents receive state-funded benefits such as income support or jobseeker’s allowance, but from September places will be made available to looked-after children and those with special educational needs.

Announcing the funding today, Deputy Prime Minister Nick Clegg said: “All too often a child’s journey in life can be mapped out for them before they’ve even set foot in the classroom – that’s why investing in early education for children will give them the chance to start school on an equal footing with their peers.

“Parents, local authorities, nurseries and childminders should all be taking the opportunity to take up the offer their children are entitled to, make sure places are available and expand local childcare provision.

“Every child deserves the chance to get ahead and get on in life, regardless of their background, financial situation or family set-up.”