Minister for Children, Families, and Wellbeing, Claire Coutinho MP, gave evidence this week to the House of Commons education committee’s inquiry into childcare and the early years. Chair of the Committee, Robin Walker MP, opened by asking about the funding rates for universal entitlement for childcare, and whether or not funding from the government was meeting the cost of delivery of the entitlement.
Claire Coutinho said that the spring statement set out the single largest investment in childcare. She said the department recognised the challenging funding situation for the sector, but that significant investment and funding will come in September.
In the Spring budget, the government said they will provide over £4.1 billion by 2027-28 to fund 30 free hours per week for working parents with children aged 9 months up to 3 years in England. From April 2024, working parents of 2 year-olds will be able to access 15 hours of free childcare per week.
Robin Walker went on to mention concerns the sector had about the increases in hourly rates, and whether or not funding would reach early years settings. He asked if local authorities are passing on as much as they should of the funding they are receiving from the government.
The minister said that the vast majority of funds, over 95%, is being passed on to providers. On LA underspends, Claire Coutinho said in 2021 it was about £60 million, which was generally as a result of LAs retaining some money for allocation for children coming into the system at different times.
On the settlement in the budget, Robin Walker asked what engagement had been had with the sector, and what they were saying about the adequacy of funding. Claire Coutinho said that the Department constantly speaks to providers, and had a survey in which over 10,000 providers participated.
