
Current national funding rates for the childcare sector were first published by government in 2015 and came into effect in 2017. They are used by councils to calculate the rate they pay early years settings to deliver government-funded childcare provision.
There have, however, been ongoing concerns that childcare providers are not receiving enough to cover their true costs, with early years research company Ceeda estimating that the early years sector in England is currently facing a funding deficit of £662m.
The government has previously claimed that funding rates were "frontloaded", when calculated in 2015 to cover the impact of any delivery cost increases experienced by childcare providers up until 2020.
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