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Early years funding for three-and four-years-olds to rise by 17p an hour

The hourly funding rate paid by the Government to local authorities for the three-and four-year-old entitlements will rise by 17p an hour in most local authority areas in England from April, the Department for Education has confirmed.
Early years settings remain concerned about the impact of wage rises and other costs PHOTO Adobe Stock
Early years settings remain concerned about the impact of wage rises and other costs PHOTO Adobe Stock

However, sector organisations have warned that the increase of just under 4 per cent - while larger than previous increases – does not do enough to compensate for historic underfunding and will not cover statutory rises to the National Minimum and Living Wage, the re-introduction of business rates, and other rising costs.

The increase is also lower than inflation, which is currently running at 4 per cent.

More than 40 areas with the lowest funding rate of £4.44 – will receive an increase of 3.8 per cent - which means that their rates will rise to £4.61 in April 2022.

While the DfE has today (Thursday) confirmed the hourly funding rates for the free early education entitlements in 2022-23 for each local authority, the final rates that early years providers will receive will be confirmed to them by individual councils.

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