Local MP, Philip Dunne, has welcomed the news that childcare providers in South Shropshire will receive a 6.8% increase to their hourly childcare payments for children aged three to four, and a 29.7% increase to the hourly rate for two-year-olds.   

Through a new standalone top-up grant called the Early Years Supplementary Grant (EYSG), local authorities will receive this funding, representing a total of additional £204 million in funding for childcare providers.  

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. 

Mr Dunne said: 

“Supporting and expanding the childcare sector means more parents can return to work or progress in the workplace. 

“So it’s great news that childcare providers in South Shropshire will see their hourly payments increase for the children they look after.  

“This forms part of the government’s wider approach to help people get back into work and grow the economy following the pandemic.” 

This funding boost is vital to support the sector as the Government rolls out record reforms across childcare services, including 30 hours free childcare to all under four children by 2025.  

As more families can rely on affordable childcare, parents will be able to take up more work and help grow the economy.