CYP Now - DfE confirms increase in funding rates for childcare places

The Department for Education has confirmed an increase in the hourly rate paid to local authorities to fund childcare places for two, three- and four-year-olds.

Sector leaders have warned the uplift will not cover costs for some providers. Picture: Adobe Stock

In a written statement to councils children and families minister Will Quince confirmed an uplift of 17 pence per hour in “the vast majority of areas” for places for three- and four-year-olds.

Nine local authorities will not receive a rise to their funding rates and will, instead, have their 2021/22 hourly funding rates for three- and four-year-olds protected by a “loss cap”, to ensure that they do not face large drops to their funding rate.

These councils are Bristol, Camden, Ealing, Halton, Islington, Lambeth, Southwark, Tower Hamlets, and Westminster.

Rutland will see funding increased by 13 pence per hour, in recognition that Rutland’s loss cap protection was only worth 4 pence per hour in 2021/22, Quince said.

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