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<p>The government published an assessment of the cost of childcare in 2015, following
a thorough review of the evidence. The review is available from: <a href="https://www.gov.uk/government/publications/review-of-childcare-costs"
target="_blank">https://www.gov.uk/government/publications/review-of-childcare-costs</a>.</p><p>
</p><p>The government has consulted on providing an average funding rate to local
authorities of £4.71 per hour for the government funded 3 and 4 year old offer, of
which 95% must be passed to childcare providers. This is above the representative
costs per hour for 3 and 4 year olds set out in the review of childcare costs. Providers
should therefore not need to subsidise government funding to meet the full cost of
providing the 3 and 4 year old offer.</p>
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