I want to address some queries that constituents raised regarding the 2023 Spring Budget and the support available for early years childcare and education. It is essential to keep our families informed about their entitlements.
Expanding Access to Childcare
One of the most significant announcements in the 2023 Spring Budget was the extension of eligibility for 30 hours of free childcare for 38 weeks, now available to eligible working parents with children aged 9 months to 3 years. This extension will be rolled out in stages, starting in April 2024. It's crucial that parents are aware of this new opportunity to access quality childcare support. The Government will also be providing £204 million to support the hourly funding rate paid to providers to deliver existing free childcare in England in 2023-24, with a further uplift to £288 million in 2024-25. This funding will be allocated by the Department for Education through Local Councils, and by 2027/28, the Government will provide around £4.1 billion to fund the extension of the 30 hours entitlement.
To ensure parents remain informed about their entitlements, a £1.2 million campaign has been launched via the childcare choices website to ensure that every parent knows about the Government-funded support they are eligible for. I encourage all parents to visit this site and learn about the assistance available to them.
Funding for Local Authorities
One concern is the demand for additional early years provision due to the introduction of 30 hours of free childcare for children aged 9 months to 3 years. The Government is committed to meeting this demand. In the past three years, the Department for Education (DfE) has invested over £3.5 billion in early education entitlements, improving the cost, choice, and availability of childcare for working parents.
Additionally, measures have been taken to increase take-up of childcare support and reduce costs for providers. These changes are designed to ensure affordable and high-quality childcare across the country, and they have yielded positive results, with 96% of providers now rated as good or outstanding, compared with 74% in 2012
Concerns have been raised about early years settings being charged business rates and not being exempt from VAT. While the Government has no plans to change the business rates system, nurseries registered as charitable organisations may benefit from charitable rate relief, and private nurseries may benefit from small business rate relief.
Quality of Care and Staffing
To address the increased demand for this education and this a greater need for qualified staff within the early years sector, the Government has made significant investments in workforce development. Apprenticeships, T-levels, continuous professional development, and support for graduates joining the sector are all part of our efforts to ensure that our children receive the best care and education.
At the Spring Budget, the Government additionally announced changing the mandatory staff to child ratio for two-year olds in early years settings from 1:4 to 1:5. This will increase flexibility for providers and the availability of childcare provision for parents. Such changes will come into force from September 2023, subject to Parliamentary procedure. This is already implemented in Scotland, where evidence in Scotland suggests that there are high parental satisfaction rates.
Universal Credit Childcare Support
Finally, it's important to remember that Universal Credit includes a childcare costs element, covering up to 85% of childcare costs. Eligibility for this element is subject to work and childcare cost conditions, and it can provide substantial support to families.
In conclusion, the Government is committed to providing accessible, high-quality childcare and early education for families across the UK. We are continually working to address concerns and improve support for parents and providers alike.
Thank you again to all those who contacted me on this issue.