The Department for Education has admitted that a miscalculation in funding for the expansion of childcare places for under-twos from autumn this year has led to a £120m shortfall in investment.
The department has committed to covering the shortfall for all local authorities after it emerged that while it had planned to fund councils to provide 15 hours of funded childcare for eligible under-twos for 22 weeks between September this year and March 2025, some councils had planned to provide 26 weeks of childcare in the same period.
In a statement sent to providers, seen by CYP Now, DfE notes: "We currently estimate that this will cost £120m, but the department will fund however much it ultimately costs for local authorities to provide those additional four weeks, based on final take up of the under-twos entitlement."
Children and families minister David Johnson addressed the issue in the House of Commons yesterday (22 January) after shadow education secretary Bridget Phillipson tabled an urgent question pressing him for a statement on the roll-out of the government's planned childcare expansion.
