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<p>By 2019 to 2020, we will be spending around £6 billion on childcare support, which
is a record amount. This includes spending approximately £1 billion extra a year on
30 hours of free childcare and to fund the increase in hourly rates that we introduced
in April 2017.</p><p>Our average funding rates are based on the department’s ‘Review
of Childcare Costs’. This was described as “thorough and wide ranging” by the National
Audit Office. The review looked at both current and future cost pressures. We recently
commissioned new research to provide us with further robust and detailed data for
the costs of providing childcare for children under five.</p><p>The latest Ofsted
data from March 2018 showed that the number of non-domestic providers has remained
stable.</p><p> </p>
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