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Spending review 2025: Concern school-based nurseries ‘favoured’ over PVI early years settings

The Chancellor has pledged an extra £1.6 billion a year for funded childcare entitlements by 2028-29 and £370 million over four years for school-based nurseries across England, but the PVI sector is 'frustrated' at the lack of urgent funding as many nurseries struggle to survive.
Nursery attendance has yet to return to pre-pandemic levels, statistics show PHOTO Adobe Stock
PHOTO AdobeStock

On Wednesday, Chancellor Rachel Reeves set out the government’s allocation of funding for day-to-day spending until 2028-29, and until 2029-30 for capital investment.

Early years organisations, unions and charities that support children and young people have been giving their reactions to the spending review.

Childcare entitlements – ‘two-tier system’ warning

Purnima Tanuku, executive chair of the National Day Nurseries Association, voiced concern that a two-tier system was being created, whereby school-based nurseries were ‘favoured’ above private, voluntary and independent nursery provision.

'We have already seen examples of how well-established, high quality nurseries have been kicked out of their premises by newly-created school-based nurseries using public money. Further investment in school-based nurseries should not result in continued displacement of existing provision,’ she said.

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