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<p>The Government will be investing over £1billion more per year by 2019-20 to fund
our commitments on the early years entitlements – this includes £300 million per year
from 2017-18 for a significant increase to the hourly rate paid for the two-, three-
and four-year-old entitlements.</p><p> </p><p>It is vital that funding for these entitlements
is fairly distributed between different parts of the country and different types of
providers, so that they can deliver both the existing 15-hour entitlement and the
extended 30-hour entitlement for working parents, on a sustainable basis.</p><p> </p><p>That
is why we have recently consulted on our proposals for a national funding formula
for the early years. Under our proposals, 75% of local authorities would have higher
funding rates, and providers in the vast majority of local authorities can expect
to gain funding, as maximum funding is passed through to the frontline. We are currently
considering all responses to the consultation, and are planning to publish the government’s
response shortly.</p>
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