In the Spring Budget 2023, the Chancellor announced a revolution in childcare - 30 hours childcare for every child over the age of 9 months with working parents by September 2025, where eligibility will match the existing 3&4 year old 30 hours offer
The information below has been provided by the DfE. Any new information, including any changes to funding rates, will be shared with all childcare providers once available.
The Early Years and Childcare Service has been provided with no more detail other than below and / or what has already been published. Any new information, including any changes to funding rates, will be shared with all childcare providers as soon as it is possible to do so.
New childcare offers
Childcare is being extended to support more parents returning to work after their parental leave ends. By September 2025, working parents of children over the age of nine months will be entitled to 30 hours of childcare. To ensure that nurseries and childminders can prepare to deliver such a major expansion, it will be rolled out in phases:
- from April 2024, working parents of 2 year olds will be able to access 15 hours childcare
- from September 2024, 15 hours childcare will be extended to all children from age of 9 months
- from September 2025, working parents of children under the age of 5 will be entitled to 30 hours childcare per week.
This staggered approach will give childcare providers time to prepare for the changes, ensuring that there are enough places and that staff are ready to meet increased demand.
Families will be advised that, as with the current offer, providers may ask for charges in addition to the free childcare. Visit www.childcarechoices.gov.uk/upcoming-changes-to-childcare-support/
How will childcare providers be supported to deliver the new offer?
The government is increasing the hourly rate paid to childcare providers to help them to deliver their existing 30 hours entitlement. Further details on the distribution of additional funding to local authorities will be provided in due course, as well as local authority level funding rates for 2023 to 2024.
Staff to child ratio for 2 year olds
The government is increasing the staff-to-child ratio. From September 2023, one member of staff will be allowed to look after five 2 year olds, up from four 2 year olds which is the current rule. This brings England in line with Scotland and other comparable countries. These changes to ratios are optional and intended to give providers more flexibility in how they run their businesses.
Support for parents on Universal Credit
Parents on Universal Credit are also set to get further support. Currently, up to 85% of childcare costs can be claimed back. However, by Summer 2023 parents will be able to access the funds upfront to make it easier for them to get a job or increase their hours. This removes any gap in funds and eases parents into the childcare costs payment cycle.
The maximum amount of support will be increased by almost 50% to £951 for those with one child and to £1,630 for those with two children.
Support for primary school age children
Local authorities and schools will be given more funding to set up wraparound care for children outside of normal school hours. Parents of school-age children can access childcare in their local area from 8am – 6pm, including breakfast and after-school clubs. The government expect that by September 2026, most primary schools will be able to provide their own before and after school care.
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