Inflation will erode funding for early years care, finds IFS

Report foresees funding for childcare places in England falling by 8% over next three years

The fast pace of inflation will significantly erode funding for early years care in nurseries and childcare providers over the next three years, according to a report by the Institute for Fiscal Studies.

The IFS said funding for childcare places in England will in effect fall by 8% by 2024-25 as a result of inflation, with providers facing costs rising by 16% over that period, mainly as the result of higher wage bills.