Dr Luke Evans, Member of Parliament for Bosworth, has welcomed news that childcare providers across Hinckley and Bosworth will receive a 6.8 per cent increase to their hourly childcare payments for children aged three to four and a 30.9 per cent increase to the hourly rate for two-year-olds.
This comes after a recent announcement by the Government that 30 hours of funded childcare would be expanded to all working parents. From April 2024 working parents of two-year-olds can access 15 hours per week and from September 2024 all working parents of children aged nine months to three-year-old can access 15 hours per week.
From September 2025 all working parents of children aged nine months to four-year-old can access 30 hours of free childcare per week.
Through a new standalone top-up grant called the Early Years Supplementary Grant (EYSG), local authorities will receive this funding, representing a total of additional £204 million in funding for childcare providers.
It will take the average rate paid for places for three and four-year-olds from its current £5.29 per hour to £5.65 per hour, and take the average rate paid for places for two-year-olds from its current £6.00 per hour to £7.95 per hour.
In addition, reforms to Universal Credit childcare costs means the Government will pay up front rather than in arrears and will increase the Universal Credit childcare cost maximum amounts to £950 for one child and £1,629 for two children.
Dr Luke Evans, Member of Parliament for Bosworth, said “It is absolutely right that this Government supports and encourages parents back into, or to progress within, the workplace.
“Having met with childcare providers across our community I know how welcome this extra funding – 6.8% for 3 to 4-year-olds and 30.9% for two-year-olds – will be as they continue to provide high quality childcare for our little ones.”
Gillian Keegan, Secretary of State for Education, added “Today is a great step forward as we deliver on the largest ever expansion of childcare which will be transformational for working families and will help grow our economy.
“I want childcare to be truly affordable and available when and where parents need it.
“This initial investment of over £200 million will go a long way in supporting the fantastic early years sector to prepare for the expansion of free childcare hours available to parents next year.”
