Thank you for contacting me about the impact the coronavirus (COVID-19) outbreak has had on early years settings.
Early years settings and other childcare providers have been put under extreme pressures throughout the COVID-19 outbreak and in recognition of this, the Government has put in place significant support for providers.
Ministers ensured that funding continued at the same level as before the COVID-19 outbreak until the end of the 2020 calendar year, giving nurseries and childminders another term of secure income, regardless of attendance rates. Early years settings will continue to benefit from a planned £3.6 billion in funding for the 2020/21 financial year, to create free early education and childcare places.
A further £44 million will be invested for the 2021/22 financial year, which will increase the hourly funding rates for all local authorities by 8p an hour for the 2 year old entitlement and, for the vast majority of areas, by 6p an hour for the 3 and 4 year old entitlement. This will pay for a rate increase that is higher than the costs nurseries may face from the uplift to the national living wage in April 2020.
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