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<p>The Government is committed to delivering flexible, affordable and quality childcare
for parents. We are carefully consulting parents, employers, providers and local authorities,
and reviewing of the cost of providing childcare with a commitment to increase the
average funding rate paid to providers.</p><p> </p><p>The market is growing (with
around 230,000 more places than in 2009) and has already demonstrated that it is able
to respond through the roll-out of the entitlement for disadvantaged two-year-olds
introduced in the last Parliament.</p><p> </p><p>We recognise that there is natural
growth in the childcare system, we can and should encourage new providers to enter
the childcare market or existing providers to expand. We have supported this expansion
with changes made to reduce bureaucracy, helping schools to provide places, and by
enabling the setting up of childminder agencies.</p><p> </p><p>Our new entitlement
of 30 hours of free childcare provides an opportunity for further growth for existing
childcare providers to expand and for new providers to enter the market, helping to
build a stronger economy and give parents increased choice. Full roll-out is scheduled
for September 2017, and our approach will be informed by the experiences of pilot
areas in 2016. We want to learn from the experience of early implementers to ensure
that the market works effectively for both parents and providers.</p><p> </p><p>We
are in the process of undertaking a review of the cost of provision and have committed
to increasing the average funding rate providers receive, which will help the sector
to grow. It is important that the hourly rate for the childcare entitlement strikes
the right balance between being fair for providers and delivering value for money
to the taxpayer.</p><p> </p>
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