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Pre-school Education: Living Wage

Question for Department for Education

UIN 142908, tabled on 10 May 2018

To ask the Secretary of State for Education, what assessment he has made of the effect of the introduction of the national living wage on the financial viability of early years providers.

Answered on

15 May 2018

The government will be investing £1 billion a year to increase our hourly funding rates for the free entitlements and deliver 30 hours of free childcare. These funding rates are based on our ‘Review of Childcare Costs’, which was described as “thorough and wide ranging” by the National Audit Office. This looked at both the current costs of childcare provision and the implications of future cost pressures facing the sector, including the National Living Wage.

We continue to monitor delivery costs of our early years entitlements and have commissioned new research to provide us with robust and detailed cost data from a representative sample of early years providers.

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