Alliance responds to IFS annual education spending report which shows a real terms funding drop

Please find below a comment from the Early Years Alliance following today's IFS annual report on education spending in England which can be read

Commenting, Neil Leitch, CEO of the Early Years Alliance, said: 

“The government claims it has supported the sector to deliver the biggest early entitlement expansion in decades, but as today’s IFS annual education spending report shows, this could not be further from reality. 

“Despite recent funding uplifts, existing government spending on early education continues to fall in real terms with hourly spending in 2022–23 nearly 9% lower than the previous year, making it near impossible for many settings to keep their doors open, never mind prepare for an influx of demand in a matter of months.  

“What’s worse, this trend of below-par funding looks likely to continue when the extended entitlement offers roll out, with the IFS warning that government funding for the expansion entirely underestimates surging costs facing providers.  

“If the government had properly engaged with the sector and addressed existing funding gaps before it announced the expansion, this could have not only stemmed the number of setting closures but also enabled settings to increase their provision to meet the upcoming increase in demand. Instead, the sector is preparing for the start of the rollout while in the worst possible position. 

“As such, we urge the government to finally listen to early years providers and commit to the investment needed to address the sector’s long-standing underfunding challenges and safeguard its future. Given that the expansion is fast approaching, time for meaningful action is running out.”