Early Education Funding

I commend all those who work in the early years sector for their efforts which make such a difference to children and families across the country. High-quality early education and childcare boosts child development, as well as making it easier for parents to work.

I was elected on a commitment to deliver a better Britain and at the heart of this mission is bringing change to the first few years of a child’s life, ensuring that opportunity is available to all, rather than being the privilege of a few.

I am pleased to see the Government commit to a review of early years funding by summer 2026. This review will examine how funding is distributed on a local and national level to ensure that the system of funding is fair and properly reflects the costs of delivery for early years providers, particularly in targeting additional needs.

In 2025/26, the Department for Education is providing over £8 billion for the early years entitlements, a more than 30% increase compared to the previous year. It is also providing the largest increase to the Early Years Pupil Premium since its introduction, with providers being allocated up to £579 per eligible child per year.

This comes alongside a further £75 million to support the early years sector in its delivery of expanded childcare hours, which will save working families up to £7,500 per year. This is particularly significant, as the previous Government committed to an expansion of childcare hours without a clear plan to deliver them.

Core funding rates also increased this year – the national average three and four-year-old hourly funding rate increased by 4.1%, two-year-old hourly funding increased by 3.3%, and the nine months to two-year-old rate increased by 3.4%.

The Budget will be announced on 26 November, and I know that this Government will be focused on supporting businesses to create jobs and innovate.