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<p>In the 2021 Spending Review the department announced additional funding for early
years of £160 million in 2022/23, £180 million in 2023/24 and £170 million in 2024/25,
compared to the 2021/22 financial year.</p><p>The department has recently announced
that we will invest an additional £20 million into early years funding in 2023/24,
on top of the additional funding announced in the 2021 Spending Review. Taken together,
this will help support providers at a national level with the additional National
Living Wage costs associated with delivering the free childcare entitlements next
year. The department will also be investing an additional £10 million into Maintained
Nursery School supplementary funding from 2023/24.</p><p>In 2023/24, local authorities
are set to receive average funding increases of 3.4% for the 3- and 4-year-old free
childcare entitlements and 4% for the 2- year-old entitlement, compared to their 2022/23
rates.</p><p>The department has again increased the early years pupil premium, which
for 2023/24 will provide up to £353 per eligible child per year to support better
outcomes for disadvantaged 3- and 4-year- olds. The department has also increased
the Disability Access Fund, which will be worth at least £828 per eligible child per
year.</p><p>The department continues to engage with sector stakeholders and local
authorities to monitor the sufficiency of childcare places and sustainability of the
early years sector.</p>
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