The Government has announced the funding rates from April 2024-25 and also set out its response to the funding consultation regarding two-year-old places.
Parents can apply for a 15-hour place for their two-year-old from 2 January, which the Government describes as: “the first step in the government’s long-term plan to give working families a brighter future.”
The average funding rate for three and four-year-olds – which has the most impact on nurseries as there are ten times more funded three and four-year-olds currently – will increase by 4.6%. From April the National Living Wage will rise by around 10%.
In real terms, the funding rates have increased by 27% since 2017 but wages have risen by 58 – 62%.
