In October, we told you about the Chancellor’s Spending Review commitment to increase the hourly rates paid to childcare providers for the government’s early years entitlements. An extra £160 million will be available in 2022/23 (compared to this year). These increases will need to cover cost pressures including the rise in the national living wage and the national insurance levy, as well as anticipated changes in the number of eligible children. The DfE has now published information about the increased rates for the funding year April 2022 – March 2023. This is available
here.
In addition to the increased hourly rate for early years entitlement, the spending review confirmed that the supplementary funding hourly rate for Maintained Nursery Schools would increase by 3.5%, equivalent to the increase in the three- and four-year-old hourly funding rates in 2022-23.
The funding for children eligible for the early years pupil premium (EYPP) will be increased so that providers will receive up to £342 per year, per child.
Full details of the rates and how they will be applied at local authority level are available
here.