Government funding for early years education and childcare is likely to fall by 8 per cent next year in real terms, economists have warned.
The Institute for Fiscal Studies says rampant inflation means a cash injection for the sector announced last year will now not be enough to keep up with rising costs.
Childcare providers’ costs are set to rise by 9 per cent between 2022-23 and 2024-25, wiping out a funding rise from £3.6bn to £3.75bn announced at the last spending review.
