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Please find below a comment from the Early Years Alliance following the publication of updated statutory guidance for local authorities on how early years settings should deliver the early entitlement offers, including rules on additional charges. 

Commenting, Neil Leitch, chief executive of the Early Years Alliance, said:

“While we fully agree that families should be able to access early entitlement hours without incurring additional costs, in reality, years of underfunding have made it impossible for the vast majority of settings to keep their doors open without relying on some form of additional fees or charges.  

“As such, while it is absolutely right that providers should be transparent with parents on any optional additional fees, today’s guidance does absolutely nothing to address – or even acknowledge – the fundamental financial challenges facing the sector.  

“Given that from September, government will control the price of around 80% of early years provision, it has never been more important for that funding to genuinely reflect the true cost of delivering places. And yet we know in many areas, this year’s rate increases won’t come close to mitigating the impact April’s National Insurance and wage rises, meaning that costs for both providers and families are likely to spiral. 

“So, while today’s guidance may rightly make charges clearer for parents, it does not take away from the fact that unless the government takes urgent action to tackle sector underfunding, many providers will still have no choice but to increase the price of any non-funded hours parents take up or optional extras they purchase – or risk facing permanent closure.

“If the government is as serious about ensuring that all families can access affordable care and education as it says it is, then it simply must tackle the root causes of rising early years costs. As we know from the past decade and beyond, ignoring the problem of underfunding won’t make it go away.”