The Chancellor has delivered his spring Budget today confirming there will be an extra £500m for providers over two years to support providers with workforce costs.
Treasury documents published after The Chancellor's speech in the House of Commons confirm 'that the hourly rate providers are paid to deliver the free hours offers will increase in line with the metric used at Spring Budget 2023 for the next two years' to support the sector to deliver the expansion of childcare.
It goes on to say, 'This reflects that workforce costs are the most significant costs for childcare providers and represents an estimated additional £500 million of investment over two years.
'Along with planned reforms to local funding rules, whereby Local Authorities (LAs) will have an eight week window to communicate final hourly funding rates to providers and will soon have to pass through at least 97 per cent of funding to providers, this gives providers more certainty on future funding so they invest in expanding their business.'
