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Analysis by NDNA of the base rates that nurseries and other providers are receiving from their local authority reveals that in many areas, ‘providers are not receiving the money they are entitled to’.

The Government’s childcare funding announcement has left providers with ‘a very small increase’, averaging just 32p per hour for three and four-year-olds, analysis by the National Day Nurseries Association (NDNA) has found.

When Education Secretary Gillian Keegan announced the £204m additional funding to increase hourly rates from September. ‘This was heralded as supporting childcare providers to get ready for the big expansion of funded places from April 2024’, NDNA said.  

However, the NDNA said in some council areas, ‘the proportion of funding they pay directly as a base rate has gone down instead of up, with children missing out as a result’.  

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