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The government has finally responded to a report by the House of Lords Affordable Childcare Committee, nearly a year after it was published.

The report, published by the committee following a five-month long evidence gathering exercise, described the “uneven allocation of funding” for free early education places in the private, voluntary and independent (PVI) sector as a “legitimate cause for concern”. It recommended that the government review “how local authorities discharge their duties in respect of funding free early education places in the PVI sector”.

In its response, the government stressed that it is “committed to introducing a fairer and more transparent way of distributing funding for the entitlements through a new national funding formula for early years” that will “see more funding passed on to providers at the front-line” adding that it will do so in the new year.

It added that the recently announced increased in funding rates (from £5.09 to £5.39 for the two-year-old entitlement; and from £4.56 to £4.88 (including EYPP)) for the three- and four-year-old entitlement will “enable providers to deliver high-quality places in line with statutory requirements alongside the introduction of the new National Living Wage”.