Pre-school Education: Finance
The question
To ask the Secretary of State for Education, what assessment she has made of the potential impact of recent changes to National Insurance contributions on the financial viability of early years settings.
Answered by Stephen Morgan
It is the government’s ambition that all families have access to high-quality, affordable and flexible early education and care, giving every child the best start in life.
Despite tough decisions to get public finances back on track, the government is continuing to prioritise and invest in supporting early education and childcare providers, including social enterprise nurseries, with the costs they face.
In the 2025/26 financial year, the department plans to spend over £8 billion on early years entitlements, rising to over £9 billion in 2026/27. We are also providing the largest ever uplift to the early years pupil premium, increasing the rate by over 45%, equivalent to up to £570 per eligible child per year. The department is also providing £25 million in respect of additional National Insurance contributions (NICs) costs through the Early Years NICs and Teachers Pay Grant, for public sector employers in the early years. This is in addition to a further £75 million through the early years expansion grant to support the sector as it prepares to deliver the final phase of expanded childcare entitlements from September 2025.
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