Spending Review 2025: More money for expansion of funded childcare and school-based nurseries

Chancellor Rachel Reeves has given the spending review speech in the House of Commons today, which sets out the Government’s spending plans for the next four years.

This includes extra money to expand funded childcare for working parents and school-based nurseries.

She also confirmed the rollout of breakfast clubs, which are already being piloted in 750 schools in England.

Reeves said she was ‘allocating the envelope set out in the spring budget’ and that departmental budgets would grow by 2.3 per cent a year in real terms.

The chancellor said, ‘My driving purpose since I became chancellor is to make working people in all parts of our country better off, to rebuild our schools and our hospitals, to invest in our economy so that everyone has the opportunity to succeed after 14 years of mismanagement and decline by the party opposite.’

Funded childcare entitlements

In the spending review document it said that there would be an extra £1.6 billion per year by 2028-29, compared to 2025-26, to continue the expansion of government-funded childcare for working parents, ‘boosting both children’s life chances and the choices parents can make about work.’ It also says that the government will continue to invest in and expand the Family Hubs programme.

Schools-based nurseries

The Chancellor said, ‘I know that a good start in life does not just start at school, I can also announce £370 million for school-based nurseries to put us firmly on track to meet our commitment for a record number of children being school ready.’