Following calls for clarification, the DfE has provided a response to questions on how employee on-costs, profit and the National Living Wage have been factored into its analysis of childcare delivery costs.
In the months following publication of the Government review of childcare costs, (1) independent research agency Ceeda and the Pre-school Learning Alliance have been appraising the methodology used and seeking clarification on key points. Here we share a round-up of recent feedback from the DfE and the issues it raises. Under-calculations on staff costs, plus a lack of clarity about how some costs are reflected in the new national funding rates mean that we believe an independent review is essential to enable the sector to thrive and successfully deliver the 30-hour policy.
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