Early years funding protected from Budget cuts
The Chancellor announced that education spending would be prioritised in this week’s Budget which includes early years funding for the entitlement expansion.
Although there are some much-anticipated cuts along with tax increases expected in the Budget on Wednesday 30 October, this means that the £1.8bn already announced for the early years expansion is “protected”.
The Government said that investment to rebuild school buildings, alongside funding for children’s social care, breakfast clubs and early years childcare reflect its “commitment to putting education back at the forefront of national life, breaking down the barriers to opportunity for all children”.
At the spring statement 2024, then Chancellor Jeremy Hunt announced that the early years funding rate would include any increase to inflation, average earnings and national minimum wages. NDNA has asked the Government whether this would include any increase to employer National Insurance contributions which would need to be included from April 2025.
NDNA’s Chief Executive Purnima Tanuku OBE told the press: “Protecting investment in early education and childcare is vital if we want to give children the best start in life and support families into work. The fact that the protected funding will match increases in inflation and wage rises is welcome news. We cannot go back to seeing real-terms cuts where funding rates do not keep pace with rising delivery costs.
“We know that nurseries and other early years settings need to recruit another 35,000 staff by next September to be able to offer the 30 hours of funded childcare promised by the Government. To do this we have to see a fully costed workforce strategy which will help attract and retain the brilliant people the sector needs.
“With providers still saying that funding rates do not cover their costs, especially for three and four-year olds, we still need to see more support for early years, especially around SEND funding, the early years pupil premium and releasing capital funds to help nurseries expand.”
The confirmation of the funding for education follows a 5.5% pay increase for school teachers agreed earlier in the year.
As part of the announcement, Secretary of State for Education, Bridget Phillipson said: “This is a Budget about fixing the foundations of the country, so there can be no better place to start than the life chances of our children and young people.
“We are determined to break down those barriers to opportunity, whether it’s brilliant early years, free breakfast clubs or high and rising standards in our schools, this government is putting education back at the forefront of national life.
“£1.8 billion has also been confirmed to support the expansion of government-funded childcare, helping deliver the roll-out through local authorities – with a further £15 million of capital funding allocated to expand school-based nurseries. Primary schools can now apply for up to £150,000 of the £15 million, with the first stage of the plan set to support up to 300 new or expanded nurseries across England creating much-needed places in areas most in demand.
“To support parents, particularly those from disadvantaged backgrounds, the government today also confirmed it will triple its investment in breakfast clubs to over £30 million to help ensure children are ready to learn at the start of the school day, and helping drive improvements to behaviour, attendance and attainment.”
- England
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