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<p>The department has spent over £3.5 billion in each of the past three years on its
early education entitlements and the government will continue to support families
with their childcare costs.</p><p>In the 2021 Spending Review, we announced additional
funding of £160 million in the 2022/23 financial year, £180 million in the 2023/24
financial year and £170 million in the 2024/25 financial year, compared to the 2021/22
financial year. This is for local authorities to increase hourly rates paid to childcare
providers and reflects cost pressures and changes in the number of eligible children
anticipated at the time of the Spending Review.</p><p>For the 2022/23 financial year,
the department has increased the hourly funding rates for all local authorities by
21p an hour for the 2-year-old entitlement and, for the vast majority of areas, by
17p an hour for the 3 and 4-year-old entitlement.</p><p>Over the summer, the department
is consulting on proposals to update the formulae used to deliver the early years
entitlements funding. This will ensure the funding system remains fair, effective
and responsive to changing levels of need across different areas.</p><p>The department
expects to announce the early years funding rates for local authorities for the 2023/24
financial year in the autumn in the normal way.</p><p> </p>
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