DfE has issued slightly more detail about the planned uplift in the hourly rates for the current and new entitlements, following the announcements in the recent Budget.
- The national average rate for local authorities for 2-year olds will increase by 30% from the current national average rate of £6 per hour to around £8 per hour from September 2023.
- The national average 3- to 4-year-old rate for local authorities will rise in line with inflation from the current national average rate of £5.29 per hour to over £5.50 per hour from September 2023, as a result of the additional £204m announced in the budget. Details on the distribution of this to local authorities will be provided “in due course” – presumably before the summer holidays
- There is a further £288m to increase funding for the entitlements for 2024-25, the distribution of which will be announced in autumn 2023.
A recent ministerial response to a parliamentary question also confirmed that the expected rate for under 2s will be around £11.
