Local authority minimum funding rate rises

The Department for Education has released its lasts Early Years National Funding Rates for 2020/21.Department for Education logo

This follows an announcement from Education Secretary Gavin Williamson revealing how the extra £66m for early years will be spent. 

The Minister for Education explained that all local authorities offering places for two-year-olds will receive an increase of 8 pence per hour per child. For three-and-four-year-olds, some local authorities will receive up to 8 pence per child per hour more whilst some will not see any increase. 

Twelve councils have not received increased funding rates. Bradford has received a 6p increase. 

Maintained nursery schools will continue to receive supplementary funding. 

Purnima Tanuku, Chief Executive of NDNA, said: “Today Education Secretary Gavin Williamson announced the details of how the extra £66m, a less than 2% increase, will be spent. The local authority rates for two-year-olds, and three-and-four-year-olds for 2020/21 have been published. 

“The vast majority of funding rates will be increased by 8 pence per hour per child. This includes funding for all two-year-olds and most three-and-four-year-olds. 

“Any increase in funding is always welcome but by the time rates are passed on to providers it will mean less for them due to the 95% pass through rate criteria.

“We are seeing costs continue to rise with proposals for the National Living Wage to increase to £10.50 by 2024. This extra few pence will still not cover actual delivery costs. 

“Now that the general election is confirmed, all political parties will be publishing their manifestos shortly. All parties must clearly cost any manifesto commitments regarding childcare and early years to ensure it covers real costs of high quality delivery. 

“Any further promises to parents for increased funded hours must fully cover all delivery costs and include a year on year uplift in funding to support nurseries sustainability and provide much needed quality care to children and families.”

See the latest Early Years National Funding Rates here

Funding rate comparison table - region
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