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<p>Ministers and officials have regular discussions with HM Treasury on matters relating
to early years funding.</p><p>On 15 March 2023, my right hon. Friend, the Chancellor
of the Exchequer announced that the hourly rates for childcare entitlements will be
substantially uplifted, on top of the additional investments announced at the 2021
Spending Review.</p><p>The department will provide £204 million of additional funding
this year, increasing to £288 million by 2024/5, for local authorities to further
increase hourly rates paid to childcare providers, with further uplifts to follow
each year. This will include an average of 30% increase in the 2 year old rate from
September 2023 and means that in 2024, the average hourly rate for 2 year olds will
be more than £8 per hour and around £11 per hour for under 2s. The 3 to 4 year old
rate will rise by 4% to over £5.50 per hour from September 2023, with further uplifts
beyond this.</p><p>This funding is in addition to the £4.1 billion that the government
will provide by 2027/28 to facilitate the expansion of the new free hours offer. This
will ensure all eligible working parents in England will, by September 2025, be able
to access 30 hours of free childcare per week, for 38 weeks of the year, from when
their child is 9 months old to when they start school.</p><p> </p><p> </p>
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