Most of the other early implementer areas will also receive an uplift in rates.
Nurseries and childminders in York had threatened to boycott the scheme because the funding was too low and unsustainable. The York pilot is unique because it is the only one of the eight early implementer areas operating on a local authority-wide scale by all types of providers.
The immediate crisis was resolved following talks between the council and DfE officials. Childcare providers in York will now be paid a flat rate of £4 for all eligible three- and four-year-olds.
Local authorities in the early implementer areas will be expected to offer a single rate for children taking up a 30-hour place. Some other areas had also previously announced split funding rates, which sector organisations and providers said would be unworkable.
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