Funded Childcare

Part of Oral Answers to Questions — Education – in the House of Commons at 12:00 am on 10th September 2018.

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Photo of Nadhim Zahawi Nadhim Zahawi The Parliamentary Under-Secretary of State for Education 12:00 am, 10th September 2018

Let me attempt to address that point specifically. National average hourly funding rates for local authorities for three and four-year-old entitlements increased from £4.56 an hour to around £5 an hour in April 2017. Our rates compare very favourably with the published research on the costs of childcare by Frontier Economics, which shows that the mean hourly cost of delivering a place is £3.72 an hour. I know that this is technical, but it is worth listening to, because the hon. Lady keeps going back to points that she clearly has not followed the details of. The research also showed that the average cost of two-year-olds’ places was £4.30 an hour, and our average funding rate is £5.92 an hour. All local authorities saw a 7% increase in the two-year-old rate in April 2017. We continue to monitor this, but those are the facts, and I hope that she will look and them and think about what she is saying about them publicly.