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EY: Spring Budget announcement regarding childcare

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Mar 20 2023

Dear early year provider,

Please see a summary of the Spring Budget announcements made by the Government last week concerning childcare:

  • DfE working through the details and will engage with sector to support implementation.
  • £4.1 billion by 2027-28 to deliver 30 hours a week of free childcare for eligible working parents of children aged 9 months up to 3 years in England, where eligibility will match existing 3-4-year-old 30 hours offer.
  • Roll-out of parts of offer coming on at different points, to be fully implemented by September 2025.
  • £204 million in 2023-24 from September, followed by increases each year to uplift the funding rate for the existing childcare offers.
  • Significant increase to current 2 year old offer, with some increase to 3 and 4 year olds rates.
  • Changes to staff-to-child ratios from 1:4 to 1:5 for two year-olds to align with Scotland and comparable countries.
  • DfE will consult on further measures to improve childcare flexibility for providers.
  • An increase of financial support for those parents on Universal Credit.
  • Upfront support for childcare costs to parents on Universal Credit.
  • Proposed national pathfinder scheme for wraparound childcare in England, to stimulate supply of local 8am-6pm childcare provision.
  • Start-up grants for childminders; £600 for those registering with Ofsted, £1200 for those registering with CMAs.

Please see links to the budget statement, regulatory changes consultation response and wider information on the proposals.

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