Despite a “significant uplift in funding” in last year’s spending review, rising inflation has turned what was intended to be a two per cent real-terms cut in total funding into an eight per cent cut between the 2022/23 financial year and 2024/25, putting “core funding per hour” for all two, three-and four-year-olds on a “decisively downward real-terms path following a rise last year”, IFS economists say.
In its new report on government spending on the early years and childcare, funded by the Nuffield Foundation as part of a wider programme of work on education spending, the IFS estimates that childcare providers’ costs are likely to rise by 16 per cent in total between 2021 and 22 and 2024 and 25, while economy-wide inflation is forecast to be around 14 per cent.
Register Now to Continue Reading
Thank you for visiting Children & Young People Now and making use of our archive of more than 60,000 expert features, topics hubs, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's Included
-
Free access to 4 subscriber-only articles per month
-
Email newsletter providing advice and guidance across the sector
Already have an account? Sign in here
