Early Years Funding: Hampshire
House of Commons · Westminster Hall · 1 Jul 2026 · 8 speeches · Official Report
Alex Brewer will move the motion, and then the Minister will respond. I remind other hon. Members that they may make a speech only with prior permission from the Member in charge of the debate and from the Minister. As is the convention in 30-minute debates, there will not be an opportunity for the Member in charge to wind up.
I beg to move, That this House has considered the adequacy of early years funding in Hampshire. It is an honour to serve with you in the Chair, Sir Alec. A Hampshire nursery manager recently told me: “Sometimes the funding arrives so late that we are genuinely worried about making wages.” That sentence has stayed with me, because it captures something that the national conversation about “free childcare” too often misses. The question is not simply whether Hampshire has enough childcare places on paper. It is also whether every family can access suitable, affordable and high-quality early education and childcare when they actually need it and whether providers have the funding and workforce to deliver that sustainably. Those are two very different questions, and today I want to address them both. Let us be clear about the scale of the pressure that the sector is under. Providers are being hammered by rising costs: increased employer national insurance contributions, rising energy costs just to keep the lights on, business rates and more. One nursery provider in my constituency of North East Hampshire told me that their liability insurance had risen by 19% this year alone, and that was on top of a 59% jump in business rates. Department for Education analysis published in May found that on average providers took in just £1.01 for every £1 that they spent in 2025, and nearly half of providers reported income that fell short of covering their costs. I am aware that one nursery...
I commend the hon. Lady for bringing this matter forward. She is right to highlight the funding shortfall, which is present across the whole United Kingdom of Great Britain and Northern Ireland. It is forcing nurseries to close, driving up childcare costs and stopping parents returning to the workforce. Does she agree that the Government need to make this issue a priority in education to ensure that children are educated and parents can cope with the pressures that they are under?
Yes, I absolutely agree; that is a precise summary of the current position. When we think of early years, most of us automatically think of nurseries, but in many areas of the country, and especially North East Hampshire, many families rely on local childminders. Earlier this month, a constituent of mine, Lorna, told me that after almost 26 years of running her childminding business, she must close it because of mounting financial pressures. She has loved the job, but the lack of any promise of a better financial future has left her with no choice. Every ambition that we hold for this system-more places, better outcomes and proper support for children with additional needs-depends on a stable, skilled and well-supported workforce. Parents do not use the language of workforce policy, but they feel its consequences all the same, including in high staff turnover, longer waiting lists, reduced flexibility and the particular difficulty of finding a place for a child with additional needs. A Hampshire nursery manager put the underlying cause to me plainly: rising costs have not come with a matched uplift in the funding rate. Staffing alone accounts for three quarters of costs in the early years sector. That leaves early years settings particularly exposed to sudden changes, such as the increase in employer national insurance contributions. Providers cannot compete for the experienced senior staff necessary to deliver high-quality support, and high staff turnover leads to higher...
It is an honour to serve under your chairship, Sir Alec. I thank the hon. Member for North East Hampshire (Alex Brewer) for securing this important debate, and all hon. Members who are present. I will start by also thanking all the wonderful staff who work in early years settings in her constituency and across Hampshire. They do a brilliant job and give all our children the best possible start in life. They deserve all our thanks and recognition. The hon. Lady made a number of fair points that I will address in my speech, but I will say at the outset that for the first time in a long time this Government have prioritised the early years. We have put record investment into the early years, with £9.5 billion next year. We have stretching targets to ensure that record proportions of children are ready for school. We are opening Best Start family hubs across the country and network sites, encouraging integration between our local services and early education providers. Through our best start in life strategy, we are determined to have the back of providers, ensuring that the workforce is brilliantly supported to continue doing such a fantastic job for our children and young people. It was important to start my remarks by situating us in that important context. I will move on to my substantive speech and address the points that the hon. Lady raised. The Labour Government have delivered a record expansion of free childcare, halving childcare costs for families, boosting family...
My hon. Friend is making an excellent point. Does she agree that there is genuine excitement and joy from families when they see the benefits of this investment? She and I have both witnessed that in our community in Reading. The Government are building on a great tradition in that local authority; I wish other local authorities invested to that extent.
I thank my hon. Friend and constituency neighbour for giving me the opportunity to thank the fantastic early years staff in my constituency of Reading West and Mid Berkshire and across Reading, who do a brilliant job for our children. As a constituency MP, as well as a Minister, I know that giving every child the best possible start in life is so important for their future life chances. If we get it right in the early years, it makes a transformational difference as they grow older. The work we are doing is thanks to our brilliant early education sector, which has worked tirelessly to deliver the large expansion of childcare, making it such a success. We have a responsibility to ensure that the sector is financially sustainable to deliver the entitlements and high-quality early years provision. That is why we are investing record amounts in early education and why, through our proposals, we have the back of the sector. In 2026-27, we expect to provide over £9.5 billion for the early years entitlements, more than doubling annual public investment in the early years compared with 2023-24. We are investing over £1 billion more than last year to deliver a full year of expanded entitlements and an above-inflation increase to entitlements funding rates. The national average funding rate increases continue to reflect the forecast cost pressures on the sector, including the national living wage, and they take into account the wider workforce pressures felt by the sector that the...
Sitting suspended.