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The government’s Spring Budget announcements this week included no changes in funding for the early years sector ahead of the 30-hours offer coming into place this September.

 

Chancellor Philip Hammond confirmed plans for the new tax-free childcare scheme, which will see the government contribute 20p on top of every 80p parents spend on childcare, alongside the 30-hours of funded childcare offer. Prime Minister Theresa May also revealed a £5 million fund to help women return to work after having children.

 

The government did not announce any new measures to support the early years sector throughout these changes, but did announce a new £320 million fund to support the creation of free schools.

Hammond also confirmed that the National Living Wage will increase from £7.20 to £7.50 for those aged 25 and over. Meanwhile, an increase in National Insurance Contributions for the self-employed was announced, affecting those earning between £8,060 and £43,000.

 

The new early years national funding formula, due to come into effect next month, is currently due to remain the same until the end of the current parliament in 2020 despite these increasing costs.

 

Neil Leitch, chief executive of the Alliance, said: “It’s incredibly disappointing that the Chancellor’s brief reference to childcare in today’s Budget included no mention of the critical issue of early years funding.”

 

Neil added: “All the research shows that the early years play the most vital role when it comes to improving life chances. If the government is genuinely committed to social mobility, it should invest its money where it would be the most effective.”

 

Last month, a report from the Family and Childcare Trust revealed that 54% of local authorities were not sure if there were enough childcare places to support the 30-hours offer in their area. Statistics from the DfE found that 44,250 early years providers plan to offer the 30-hours, compared to 54,900 who currently offer parents the existing 15-hours offer.