Yorkshire coast’s YMCA warns continued underfunding puts settings and family support at risk

The report shows that Early Years Funding Formula (EYNFF) for 2023/24 falls 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 Yorkshire Coast found that the funding rate in North Yorkshire has increased by an average of 4.5% for three and four-year-olds and 2.3 % for two-year-olds in 2023/24.

For East Riding of Yorkshire, funding has increased by an average of 4.5% for three and four-year-olds and 1.1 % for two-year-olds in 2023/24.

Liam Downey, General Manager of YMCA Yorkshire Coast 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.

“This comes on top of years of underfunding, with 80% of YMCA childcare settings stating prior to the 2023/24 Early Years National Funding Formula announcement that they cannot deliver childcare at the funding rate provided by their local authority.

“We know that offering the right early years support gives children the greatest chance of reaching their potential than at any other stage of their life, and yet settings are essentially being forced into extinction due to drastic underfunding.

“The current model simply does not work. Government must invest in early years provision, before it is too late.”

Providers like YMCA are now having to make difficult decisions about their early years settings.

YMCA Yorkshire Coast is starting to identify what services they should run across the Yorkshire coast as the funding gap makes it less likely that they will be able to facilitate Early Years provisions.

Many of the YMCAs currently work in the most disadvantaged communities where there is less funding available due to families being unable to afford additional non-government funded hours, which in more affluent areas is often used to offset the low national funding rate.

The research from YMCA shows that deprived settings experience a higher level of additional need, SEND and children with protection plans, further adding to already strained resources.