MP Bob Seely has welcomed news that childcare providers on the Isle of Wight will receive a funding boost.
It has been announced by the government that childcare providers on the Isle of Wight will receive a 10.1 per cent increase to their hourly childcare payments for children aged three to four and a 32.4 per cent increase to the hourly rate for two-year-olds.
The government has set aside an initial investment of £204 million that will be distributed through a new grant - the Early Years Supplementary Grant - to childcare providers via local authorities.
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.
The government is also extending the provision of 30 free hours of childcare a week to all working parents. Working parents of two-year-olds can access 15 hours per week from April 2024 and from September 2024 all working parents of children aged nine months to three-year-old can access 15 hours per week. From September 2025 all working parents of children aged nine months to four-year-old can access 30 hours of free childcare per week.
Government reforms across the childcare sector include increasing the hourly rates paid to providers of free childcare to £204 million next year, increasing to £288 million by 2024-25, changing to two-year-old ratios from 1:4 to 1:5 and allowing childminders to care for more than three children under five if some children are siblings, or their own child and introducing childminders grant to support childminders with start-up costs. Universal Credit childcare support will also be paid upfront rather than in arrears.
Welcoming the news, Mr Seely said: “Supporting and expanding our childcare sector means more parents can return to work or progress in the workplace.
“The Isle of Wight Council will see their hourly payments increase for the children they look after. Providers will now receive 10.1 per cent more funding per hour for children aged between three and four years old and 32.4 per cent for children aged two years old.
“The government is rightly making sure more parents can rely on affordable childcare, allowing them to take up more work and help grow the economy.”
Education Secretary Gillian Keegan said: “I want childcare to be truly affordable and available when and where parents need it.
“This initial investment of over £200 million will go a long way in supporting the fantastic early years sector to prepare for the expansion of free childcare hours available to parents next year.”
