Nurseries and childminders set to receive funding rates increase 

The government has said nurseries and childminders will benefit from higher payment rates from today (1 September), as part of the largest ever investment in childcare in England. 

The government has today increased the funding rates to local authorities for both three- and four-year-olds and two-year-olds. 

The government said £204 million of funding is providing an ‘uplift’ for local authorities to increase hourly rates paid to early years providers for delivering the government funded hours to parents.  

Funding rates per child paid from today are increasing from an average of £5.29 to £5.62 for three and four-year-olds, and from an average of £6.00 to £7.95 for two-year-olds.  

There will be a further increase in funding to come next year, with the average rate paid to local authorities for 2024/25 anticipated to be set at £8.17 for two-year-olds and £11.06 for under twos.  

Final 2024-25 hourly funding rates for local authorities for all age groups will be confirmed in the autumn.  

From April 2024, eligible working parents of two-year-olds will get a new offer of 15 free hours per week of free childcare. From September 2024, eligible parents will get 15 free hours from nine months until their children start school, and from September 2025, they will get 30 free hours from nine months until the start of school.  

Parents whose children turn three this term can sign up for the 30 hours codes for the spring term, which starts from 1 January. The government is urging every parent to check now if they are claiming the free childcare hours they are entitled to, with national data showing almost one in five eligible children may be missing out.   

Minister for Children and Families David Johnston said: “This funding increase is another vital step in this government’s work with the early years sector to deliver the flexible, affordable, and quality childcare that parents need. 

“With yet another increase in funding coming next year, we are committed to supporting nurseries, childminders and everyone working with children in their vital early years to deliver on our biggest ever investment into childcare in England – set to save a working parent using 30 hours of childcare up to an average of £6,500 per year.”