YMCA warns latest Early Years National Funding Formula and continued underfunding puts settings and family support at risk

A report released today by YMCA revealed that the Early Years Funding Formula (EYNFF)* 2023/24 falls far short of the support needed for providers to deliver the Government’s free childcare scheme, as inflation and National Living Wage effectively outstrip any increase across England.

YMCA found that the funding rate for three and four-year-old early years education has increased by an average of 3.2%, and 4.4% for two-year-olds in 2023/24. However, one-third (33.8%) of local authorities received a funding increase of just 2% or less for three and four-year-olds, and nearly half (47.7%) received 2% or less for two-year-olds.

Comparing these figures to increases of 10.1% in inflation and 9.7% in National Living Wage, this leaves a 7% shortfall in funding for three and four-year-olds and 5.7% for two-year-olds. This funding gap delivers a particularly hard blow given that wages account for around 70% of early years setting expenditure.

All of this combined means that providers like YMCA are now having to make difficult decisions about their early years settings, with one local YMCA forced to close four nurseries as they were simply no longer viable, leaving 145 children seeking a new early years placement.

Denise Hatton, Chief Executive of YMCA England & Wales, said:

“Looking at the current picture of funding for early years settings against a backdrop of colossal inflation rates, ongoing cost of living and a full blown recruitment crisis, it is little wonder that providers are buckling under the strain.

“We know that offering the right early years support gives children the greatest chances. The Government must invest in early years provision before it is too late.”

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YMCA warns latest Early Years National Funding Formula and continued underfunding puts settings and family support at risk

A report released today by YMCA revealed that the Early Years Funding Formula (EYNFF)* 2023/24 falls far short of the support needed for providers to deliver the Government’s free childcare scheme, as inflation and National Living Wage effectively outstrip any increase across England.

Creating positive outcomes with children and young people in their communities, and support for families with nursery, day care, holiday and year-round programmes.

YMCA research has also shown that deprived settings often experience a higher level of additional need, SEND and children with protection plans, further adding to already strained resources.

YMCA collectively works with 166,039 young people, children, parents and carers to provide the best possible start in life.

Denise Hatton, Chief Executive of YMCA England & Wales, said:

“Looking at the current picture of funding for early years settings against a backdrop of colossal inflation rates, ongoing cost of living and a full blown recruitment crisis, it is little wonder that providers are buckling under the strain.

“We know that offering the right early years support gives children the greatest chances. The Government must invest in early years provision before it is too late.”

We help whole families to flourish.

YMCA works with more than 166,000 children, young people, parents and carers to provide the best possible start in life, offering support into teenage years and beyond.

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YMCA warns latest Early Years National Funding Formula and continued underfunding puts settings and family support at risk

A report released today by YMCA revealed that the Early Years Funding Formula (EYNFF)* 2023/24 falls far short of the support needed for providers to deliver the Government’s free childcare scheme, as inflation and National Living Wage effectively outstrip any increase across England.

Creating positive outcomes with children and young people in their communities, and support for families with nursery, day care, holiday and year-round programmes.

YMCA research has also shown that deprived settings often experience a higher level of additional need, SEND and children with protection plans, further adding to already strained resources.

YMCA collectively works with 166,039 young people, children, parents and carers to provide the best possible start in life.

Denise Hatton, Chief Executive of YMCA England & Wales, said:

“Looking at the current picture of funding for early years settings against a backdrop of colossal inflation rates, ongoing cost of living and a full blown recruitment crisis, it is little wonder that providers are buckling under the strain.

“We know that offering the right early years support gives children the greatest chances. The Government must invest in early years provision before it is too late.”

We help whole families to flourish.

YMCA works with more than 166,000 children, young people, parents and carers to provide the best possible start in life, offering support into teenage years and beyond.