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Secretary of State for Education, Nicky Morgan, has announced the new average funding rate for the early years. The average hourly rate for free childcare for 3 and 4 year olds will be £4.88 including the EYPP, and for free 2 year old childcare will be £5.39. She also announced that a national early years funding formula review will be conducted in 2016.

Earlier the Chancellor announced some changes to the 30 hours free childcare eligibility in the Spending Review. To be eligible parents needs to be working the equivalent of 16 hours per week per parent at the national minimum wage, and earning less than £100,000 per parent.

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