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<p>In the Spring Budget 2023, the government announced a number of transformative
reforms to childcare for parents and children. This government will expect to be spending
in excess of £8 billion every year on free hours and early education by 2027/28, helping
working families with their childcare costs. This announcement represents the single
biggest investment in childcare in England.</p><p>From September 2025, working parents
will be able to access 30 hours of free childcare a week for 38 weeks a year, from
the point their child is 9 months to when their child starts school. The department
is ensuring a phased implementation of the expansion to the 30 hours offer to allow
the market to develop the necessary capacity. We are working closely with the sector
on the implementation of these reforms.</p><p>The government will also increase support
for those parents on Universal Credit who face the highest childcare costs, by increasing
the Universal Credit childcare cost maximum amount and providing support with childcare
costs upfront rather than arrears.</p><p>The reforms announced build on the department’s
current early education entitlements that the government offers, which includes a
universal 15 hour offer for all 3 and 4-year-olds, a 15 hour offer for the most disadvantaged
2-year-olds, the existing 30 hours offer for 3 and 4-year-olds, Tax-Free Childcare,
and Universal Credit Childcare.</p><p>My right hon. Friend, the Chancellor of the
Exchequer, also announced that the hourly rates for the entitlements will be substantially
uplifted, on top of additional investments announced at the 2021 Spending Review and
on 16 December 2022.</p><p>We will provide £204 million from September 2023, increasing
to £288 million by 2024/25, or local authorities to further increase hourly funding
rates to providers, with further uplifts to follow each year. This will include an
average 30% increase in the national average 2-year-old hourly rate from September
2023 and means that the average hourly rate for 2-year-olds will rise from the current
£6 per hour in 2023/24 to around £8 per hour. The average 3 and 4-year-old rate will
rise in line with inflation to over £5.50 per hour from September 2023, with further
uplifts beyond this.</p><p>This funding is in addition to the £4.1 billion that the
government will provide by 2027/28 to facilitate the expansion of the new free hours
offer.</p><p>The government is investing up to £180 million in a package of training,
qualifications, expert guidance, and targeted support for the early years sector to
support the learning and development of the youngest and most disadvantaged children.</p><p>Designed
to support all areas of the early years sector, the Early Years Education Recovery
Programme offers national programmes focusing on continuing professional development,
with training on child development, communication and language, early maths and personal,
social and emotional development, leadership of settings, supporting caregivers in
their home learning environment, and speech and language skills of children in reception
year.</p><p>The department will be providing additional funding for qualifications
for graduate level specialist training leading to early years teacher status, accredited
level 3 early years Special Educational Needs Co-ordinators qualification, and improving
the Early Years level 3 qualification. We will also be providing support and guidance
to early years settings through Stronger Practice Hubs and Experts and Mentors.</p><p>The
department acknowledges that recruitment and retention are key issues for the early
years sector. Supporting this workforce continues to be a priority for the department,
and we are working proactively with the sector and local authorities to grow, develop,
and support the workforce.</p>
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