• At the Spring Budget 2023, the Government announced a whole package of reforms to the childcare sector to help more parents into work to grow the economy.
• These reforms include extending free childcare to all under four-year-olds by 2025, paying Universal Credit childcare support upfront rather than in arrears and substantially uplifting the hourly funding rate paid to childcare providers.
• The Government has announced local authorities will receive an initial investment of £204 million that will be distributed through a new grant to childcare providers.

Henry Smith MP has welcomed the news that childcare providers in West Sussex will receive a 10.1 per cent increase to their hourly childcare payments for children aged three to four and a 42.3 per cent increase to the hourly rate for two-year-olds.

Through a new standalone top-up grant called the Early Years Supplementary Grant (EYSG), local authorities will receive this funding, representing a total of additional £204 million in funding for childcare providers.

It will take the average rate paid for places for three- and four-year-olds from its current £5.29 per hour to £5.65 per hour, and take the average rate paid for places for two-year-olds from its current £6.00 per hour to £7.95 per hour.

This funding boost is vital to support the sector as Government rolls out record reforms across childcare services, including 30 hours free childcare to all children under four by 2025.

As more families can rely on affordable childcare, parents will be able to take up more work and help grow the economy.

Henry said;

“Supporting and expanding our childcare sector means more parents can return to work or progress in the workplace.

“Therefore, it’s great news that Crawley will see hourly payments increase for the children being looked after. Providers will now receive 10.1 per cent more funding per hour for children aged between three- and four-years-old and 42.3 per cent more for children aged two-years-old.

“It’s right to ensure more parents can rely on affordable childcare, allowing them to take up more work and help grow the economy.

“I’m grateful to the Education Secretary, Gillian Keegan, for coming to Crawley recently to see for herself how hard local childcare providers work.”

In Parliament (on Monday, 17th July), the Crawley MP highlighted the importance of this £204 million boost and thanked the minister for her visit to the town.

The Secretary of State for Education, Gillian Keegan, commented;

“Today is a great step forward as we deliver on the largest ever expansion of childcare which will be transformational for working families and will help grow our economy.

“I want childcare to be truly affordable and available when and where parents need it.

“This initial investment of over £200 million will go a long way in supporting the fantastic early years sector to prepare for the expansion of free childcare hours available to parents next year.”