Sustainable childcare funding – Thanks to the planned expansion of funded childcare, four out of five early years places will be paid for by the state by 2025. However, there is insufficient capacity to meet existing demand – nearly half of councils report falling numbers of free entitlement places – so where the extra places will come from is unclear (see special report). Current funding levels are insufficient to encourage providers to create more places nor enhance staff pay to help recruitment. Labour is rumoured to be looking at a means-tested offer for the most disadvantaged families. A realistic rate for providers is crucial to both policy options.
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