Alliance calls for urgent action on childcare funding in upcoming Budget

Alliance calls for urgent action on childcare funding in upcoming Budget

Commenting on the news that the next Budget will take place on 11 March, Neil Leitch, chief executive of the Early Years Alliance, said:
“As the financial pressure on pre-schools, nurseries and childminders across the country continues to build, it is vital that the Chancellor commits to taking urgent action to address the growing early years funding crisis at this year’s Budget.

“In April, the national living and minimum wages will rise by more than 6%, and yet early years providers will see a funding rate increase of just 2% at best – and many will receive far less than that. Childcare providers in England have already faced years of rising costs versus stagnant funding, and for many, this latest cost increase may well be the final straw.

“The government cannot continue to simply ignore this problem and hope it goes away. Without a significant increase in funding, we will continue to see rising childcare costs for parents, a shortage of places for children who need them and, in a growing number of cases, providers forced to close their doors for good.

“As such, we urge the Chancellor to take this opportunity to set out exactly how the government plans to ensure that the early years is adequately supported going forward. The sector simply cannot afford to wait any longer.”

 

Editor notes 

  • Figures published by the Department for Education revealed that local councils will receive an additional 8p per hour for two-year-old places and up to 8p more per hour for three- and four-year-old places (though some areas are seeing no increase in three- and four-year-old funding) in 2020/21.
  • The government has confirmed that the national minimum wages are set to increase across all age groups, with rates set to increase by up to 6.5% on 1 April 2020. The national living wage for workers aged 25 and over will increase from £8.21 to £8.72.
  • The Early Years Alliance is the largest and most representative early years membership organisation in England. A registered educational charity, it also provides high-quality affordable childcare and education to support children and families in areas of deprivation throughout the country.
  • The Alliance represents 14,000 members and supports them to deliver care and learning to more than 800,000 families every year. We deliver family learning projects, offer information and advice, produce specialist publications, run acclaimed training programmes and campaign to influence early years policy and practice.

ENDS

About the Alliance

  • The Early Years Alliance is the largest and most representative early years membership organisation in England. A registered educational charity, it also provides high-quality affordable childcare and education to support children and families in areas of deprivation throughout the country.
  • The Alliance represents 14,000 members and supports them to deliver care and learning to more than 800,000 families every year. We deliver family learning projects, offer information and advice, produce specialist publications, run acclaimed training programmes and campaign to influence early years policy and practice.
  • The Alliance website is www.eyalliance.org.uk