Richard has welcomed the news that childcare providers in Bedford Borough and Central Bedfordshire local authorities will receive a 6.7 per cent increase to their hourly childcare payments for children aged three to four and a 32.5 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 across the country will receive this funding, representing a total of additional £204 million in funding for childcare providers.
It will take the national 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 national 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 the government rolls out record reforms across childcare services, including 30 hours free childcare to all under four children by 2025.
As more families can rely on affordable childcare, parents will be able to take up more work and help grow the economy.
Commenting, Richard Fuller MP said:
I welcome the Chancellor’s measures from the Spring Budget which are seeking to break down a major barrier that stops many people from working – the cost of childcare.
Currently, parents who work more than 16 hours a week and earn less than £100,000 can claim back the costs for up to 30 hours childcare a week for children aged three to four. The Chancellor has expanded this so that working parents of all children over the age of nine months can make a similar claim to cover their costs of childcare.
This landmark change will reduce the cost for parents of one- and two-year-olds by up to 60% and will benefit many parents within North East Bedfordshire.
Working parents of two-year-olds will be able to access 15 hours per week from April 2024 and from September 2024, all working parents of children aged nine months to three-year-old will be able to access 15 hours per week. From September 2025, all working parents of children aged nine months to four-years old will access 30 hours of free childcare per week. This staggered approach along with the Early Years Supplementary Grant (EYSG) will help the sector deliver this expansion in coverage.
