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Spending Review: Early years sector to receive a rise of £44m in 2021-22

Policy & Politics Coronavirus
The rise in funding for early years providers from April will be a third less than the increase in last year’s Spending Review, despite the impact of coronavirus, which is pushing many nurseries and childminders 'to the brink'.
Chancellor Rishi Sunak visited Rosedene Nurseries in Northallerton in September to thank them for caring for the children of local hospital staff during lockdown
Chancellor Rishi Sunak visited Rosedene Nurseries in Northallerton in September to thank them for caring for the children of local hospital staff during lockdown

Rishi Sunak set out his one-year Spending Review plans, which will come into force from April 2021, in Parliament earlier today.

In his speech to MPs, the Chancellor said the Government is spending £280 billion to get the country through the Covid-19 pandemic.

The Office for Budget Responsibility is forecasting that the UK economy will shrink by 11.3 per cent this year – the biggest fall in 300 years, he said.

Mr Sunak said it would take until the end of 2022 for the economy to return to its pre-pandemic size.

The Spending Review 2020 document said that the Government will invest ‘£44 million in funding for early years education in 2021-22 to increase the hourly rate paid to childcare providers for the government’s free hours offers’.

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