As the Department for Education (DfE) announces national average hourly funding rates, the sector warns the increase is insufficient, and adds up to more early years settings closures .
The DfE has released details of funding rates it will pay to local authorities per child from April 2024, when the first phase of the extended hours offer will be introduced.
National average hourly rates paid by the Government will be £11.22 for under twos, £8.28 for two-year-olds, and £5.88 for three- and four-year-olds from April. ‘These rates reflect the increase in the National Living Wage from April 2024, which makes up a significant proportion of providers' costs,’ the DfE said.
The DfE also announced that parents who will be eligible for the first phase of the rollout will be able to apply for a funded place for their two-year-old from 2 January 2024.
