South Shropshire misses out on nursery funding as MP calls for fairer investment

Stuart Anderson MP has voiced his strong disappointment after South Shropshire failed to secure funding for nursery provision within primary schools, highlighting the urgent need for increased investment in rural childcare.

The announcement on April 2nd revealed that only half of the applicants in the West Midlands, despite the region accounting for 11% of primary schools, were successful in their bid for a share of the £37 million pot.

This setback means that an estimated 733 families with young children aged 9 months to 2 years in Mr Anderson's constituency will continue to face challenges in accessing affordable early years education. The initial funding round saw 637 applicants bidding for a total of £75.8 million, double the amount ultimately awarded.

The Department for Education has stated that there will be no appeals process for the unsuccessful applications but has indicated a review of the process ahead of future funding rounds. The MP is urging the government to expedite these future rounds and ensure that rural areas like South Shropshire receive a fair allocation of support.

His call to action is further underscored by a recent Ofsted report which identified a "disproportionate amount” of childcare deserts in rural areas. The education regulator's findings revealed that while only 12% of local areas in England are rural, these areas account for 18% of childcare deserts, highlighting the existing disparities in access.

Adding to the pressure on the childcare sector, nurseries are bracing for a 1.2% hike in employer's National Insurance Contributions (NICs) from April 6th, 2025. This increase is projected to cost nurseries an average of over £800 per employee annually. Furthermore, a reduction in the threshold at which companies start making these contributions, from £9,100 to £5,000, means businesses will begin paying the tax sooner, contributing to an estimated £25 billion tax increase on businesses overall.

A recent survey by the National Day Nurseries Association (NDNA) revealed that a staggering 96% of nurseries intend to raise their fees by 10% to offset these increased statutory employment costs, which they estimate will amount to an extra £2,600 per employee.

In response to these challenges, Stuart Anderson has written to the Minister for Early Years, emphasising that rural areas must not be overlooked when allocating childcare funding. He stressed the additional costs associated with both accessing and delivering childcare in less densely populated areas, echoing Ofsted's observation that providers may be hesitant to open in such areas due to factors like longer commutes and limited public transport for parents.

Speaking about the situation, Stuart Anderson MP said: "Securing access to affordable childcare can be a real struggle for many families in South Shropshire. As a parent, I know how difficult this can be.

"So, I am disappointed that South Shropshire has missed out on funding for school-based nurseries. Across the West Midlands, only half of early years providers that applied for the funding have been approved.

"With more than 700 young families in our constituency, I am adamant that we must not be left behind by the big cities when it comes to allocating funding for childcare.

"Ministers should recognise the extra costs involved in both delivering and accessing childcare in rural areas like ours. They should proceed with further funding as soon as possible, with rural areas receiving a fair share of support."

Mr Anderson's campaign highlights the growing concerns about the availability and affordability of childcare in rural communities and puts pressure on the government to address the specific needs of these areas in future funding allocations.