Julia Lopez MP has welcomed the news that childcare providers in Havering Council will receive a 3.3% increase to their hourly childcare payments for children aged three to four and a 32.5% increase to the hourly rate for two-year-olds.

Through a new standalone top-up grant called the Early Years Supplementary Grant (EYSG), local authorities will receive this funding, representing a total of additional £204 million in funding for childcare providers.

It will take the average rate paid for places for three and four-year-olds from its current £5.29 per hour to £5.65 per hour, and take the average rate paid for places for two-year-olds from its current £6.00 per hour to £7.95 per hour.

This funding boost is vital to support the sector as the Conservative Government rolls out record reforms across childcare services, including 30 hours free childcare to all under four children by 2025.

As more families can rely on affordable childcare, parents will be able to take up more work and help grow the economy.

Moving forward, further funding increases in the amounts paid to local authorities to pass to providers for delivering the government’s free childcare places will be provided, with an additional investment of £288 million already announced at the Spring Budget for 2024-25.

The Department for Education will also soon be launching a consultation on how the funding for the new entitlements in 2024-25 will be distributed, to make sure it remains fair in light of the radically expanded free childcare offers.

 £12 million in additional funding is also being given to local authorities this financial year to support them to effectively roll out the new offer.