Last reviewed 3 January 2020

Early years leaders are calling on the new government to commit to a review of funding rates for the early years, following the Conservative Party’s election win.

After the Conservatives won by a majority of 80 seats, early years and education groups called for children to be made a priority by the new government.

Prior to the election, research by Ceeda estimated that the Conservative party’s existing childcare offers and manifesto pledge to increase the National Living Wage would leave the early years sector with an annual deficit of £824 million by the end of the next parliament.

The Conservatives have pledged to deliver a £10.50 per hour National Living Wage by 2024. However, despite rising costs in wages, pension contributions and business rates, most local authority early years funding rates will remain at the same level they were set at in 2015.

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

"Childcare providers may have been hoping for a change of direction for the sector as a result of this election. Sadly, with the Conservatives failing to commit to any further funding for the early years, many will still be concerned about the future and long-term viability of their businesses after last night’s result.”

“This government could leave the sector facing an £800 million funding shortfall by the end of this parliament that will further increase parent fees and force more providers to close. We can't go on like this – we urgently need funding levels to cover the true cost of delivering childcare and a firm commitment for them to be reviewed annually."