Early years leaders have criticised Chancellor Rachel Reeves’ failure to mention the sector in today’s Spring Statement.

Neil Leitch, chief executive of the Early Years Alliance, said: “It is both disappointing and incredibly frustrating that the early years sector has been ignored yet again in today’s Spring Statement.”  

He added: “Given the wealth of research showing that a strong early years sector is key to economic growth, you would have thought that today offered an ideal opportunity for government to commit to investing what’s needed in the sector as part of a wider growth strategy. 

“Instead, we are facing a situation where, despite being majority-government funded, private and voluntary settings are being forced to absorb upcoming national insurance increases – alongside minimum wage rises – with no support from the Treasury. As a result, many settings have been left with no choice but to substantially increase parent fees, or risk permanent closure.” 

Purnima Tanuku, chief executive of National Day Nurseries Association (NDNA) said: “The Chancellor spoke about growing the economy and to do that we need solid infrastructure. Early education and care including wraparound care is the most important part of this infrastructure. This enables parents to work, but also gives children the foundations for learning, boosting their education and our future workforce.”

She added: “It’s vital to invest in our children’s futures while also scaffolding the economic growth that this Government is keen to deliver.

“The national scandal that is underfunded early education and care will put government plans to boost the economy, get more people into work and expand funded childcare places at risk. The lack of level playing field with maintained sector provision and restrictions imposed on private and voluntary nurseries to deliver high quality early education and care will stifle businesses and threaten their sustainability.

“The significant rise in staffing costs due to the increase in National Insurance Contributions combined with chronic underfunding is seriously threatening the sector that delivers the majority of places in England.  Early years providers must be given support and flexibility to manage their businesses rather than having more conditions imposed on them.”