Free Childcare: Providers

14. What assessment she has made of the potential impact of 30 hours of free childcare on early years providers.

This Labour Government’s record expansion of free childcare is saving working families across the country over £8,000 a year. We have worked closely with early education providers across the sector throughout the roll-out, and I thank them for their tireless work. We are investing over £9 billion in early years entitlements this year, and I am pleased to say that we have seen a huge increase in the number of places that providers have on offer.

I recently met several early years providers, who told me that the 30 hours funded childcare scheme is placing real strain on their businesses because the policy does not take into account the setting up time, the packing away time, and the time spent training and dealing with compliance issues with their staff. Combined with the recent national insurance rises, this is threatening the financial viability of these businesses. Will the Minister agree to review the policy’s implementation so that providers, particularly smaller ones that rely on that funding, are kept financially viable and can provide their services to the people who need them?

I thank the hard-working staff in the hon. Gentleman’s constituency. When the Government say we are prioritising the early years, we mean it. We are investing £9.5 billion this year. Rates have increased more than ever before to reflect inflationary pressures and the increases to the national living wage; we have increased the pass-through rate from local authorities to providers, and we have continued to lift the early years pupil premium. We are determined to give every child the best start in life.