The expansion of free childcare in England is set to be backed by ‘fair funding for all age groups’, the Government has announced.

The Department for Education today launched a consultation on its funding formula for the extension of free childcare to cover all ages from nine months to the start of school.

Chancellor Jeremy Hunt announced in March the Government would provide £4.1bn by 2027-28 to deliver 30 hours a week of free childcare for eligible working parents of children aged nine months to three years in England.

The proposed funding formula will mean the expected average rate paid to local authorities for 2024/25 will be set at £8.17 for two-year-olds and £11.06 for under twos.

This makes the Government rate for under twos almost double the average hourly fee of £5.68 charged to parents.

However, the consultation document emphasises that these rates are ‘illustrative only’ and that confirmation of the rates will come in autumn 2023.

Minister for Children, Families and Wellbeing, Claire Coutinho said: ‘The Education Secretary, Gillian Keegan, just announced increases to the amount we pay nurseries and childminders to offer free hours to two-year-olds. Today we’re giving providers further confidence that the largest ever expansion of free hours over the coming months and years will be properly and fairly funded.

‘Working parents can start getting ready for a helping hand with costs from the end of maternity leave right up until the end of primary school, with average savings of £6,500 a year if they use the full 30 free hours for their children.’