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By Shannon Pite

The Early Years Alliance has criticised the government for failing to provide addition financial support for the early years sector during this year's Spring Statement.

The Chancellor, Rachel Reeves. delivered the statement to the House of Commons on 26 March. However, despite stark warnings of the potential impact of national insurance increases, minimum wage raises and changes to guidance on charging, there was no reference to the early years sector during the parliamentary session.

Despite this, the Treasury has responded to concerns about government impact assessments showing that welfare cuts announced at the Spring Statement could push an additional 50,000 children could be pushed into poverty by arguing that these assessments do not take into account the impact of  "falling childcare costs"

Neil Leitch, CEO of the Early Years Alliance, said: “It is both disappointing and incredibly frustrating that the early years sector has been ignored yet again in today’s Spring Statement.

“Given the wealth of research showing that a strong early years sector is key to economic growth, you would have thought that today offered an ideal opportunity for government to commit to investing what’s needed in the sector as part of a wider growth strategy.

“Instead, we are facing a situation where, despite being majority-government funded, private and voluntary settings are being forced to absorb upcoming national insurance increases – alongside minimum wage rises – with no support from the Treasury. As a result, many settings have been left with no choice but to substantially increase parent fees, or risk permanent closure.

“If the government is truly serious about both growing the economy and ensuring that every child gets the best start in life, surely it has no choice but to invest in the sector that can help it do both. The sooner the government’s actions on the early years start matching its rhetoric, the better for everyone.�