Lib Dem conference: £100m capital funding for two-year-old entitlement

The financial support is intended to allow early education settings to create an estimated 100,000 extra places for disadvantaged two-year-olds by September 2014, in order to fulfil the government's plans to expand the free entitlement.

Local authorities will be able to use the funding to attract new providers to the early education and childcare sector, especially where the market is less developed.

The funding will also support existing providers in expanding their services to deliver free childcare for 130,000 of the most disadvantaged two-year-olds from September 2013, rising to 260,000 (40 per cent of all two-year-olds) in September 2014.

“It is vital that we do all we can to make sure a child’s potential isn’t determined by the circumstances of their birth,” Nick Clegg said. “The money we are announcing today will help nurseries and childminders get ready to deliver this revolution in early education.”
 
Megan Pacey, chief executive of Early Education, said she was pleased that government had acknowledged the need to increase funding for providers in order to make the free entitlement work.

"We are pleased to note that alongside the initial investment to support the free entitlement programme for two-year-olds, the coalition government has also now acknowledged the need for money to be made available for capital investment to support the delivery of age-appropriate, effective early education provision to support the learning and development needs of some of our youngest and most vulnerable young children,” she said.

Purnima Tanuku, chief executive of the National Day Nurseries Association, praised government for providing the cash, but warned the funds would still not go far enough.

"The availability of capital investment to develop facilities for two-year-olds has been highlighted to us by nurseries as a barrier to getting involved in the new offer of free places, so this funding is a welcome investment by government,” she said.

“Capital funding, however, is only part of the story and national and local government must also ensure that the hourly rate for two-year-olds is sufficient to cover providers' costs, otherwise it will not be sustainable for providers to get involved for the long term.”

Anne Longfield, chief executive of 4Children, said the money had to be used wisely to provide sufficient places where early years provision is lacking.

“The financial commitment needs to be matched with a continued strategy for closing the gap in disadvantaged areas where there is greater demand than places available,” she said.

Daycare Trust chief executive Anand Shukla said the funding would bring confidence to parents and providers.

“It is a tall order for local authorities to provide enough places for all eligible children, and ensure that parents can be confident that the provision is high-quality and suitable for very young children, and this extra funding will help them meet that challenge,” he said.