Funding for “free” childcare places in Brighton and Hove is due to increase this year but it is the lowest rate in the south east.
All three and four-year-olds are entitled to 15 hours of government-funded child care a week during term time.
Childcare providers in Brighton and Hove receive funding worth £4.59 an hour for pre-schoolers from the government, below the national average of £4.99.
From next financial year the rate will increase to £4.76.
Brighton and Hove City Council receives slightly more to provide “free” nursery places for two-year-olds from disadvantaged backgrounds, who are entitled to 570 hours of funded childcare a year.
For this age group, Brighton and Hove receives an hourly rate of £5.36 an hour.
The national average is £5.63 an hour, and the highest amount provided by the government in the south east is £6.04.
For 2022-23, this rate will go up to £5.57 in Brighton and Hove, with the whole amount passed on to providers.
Government funding to councils for the early years free entitlement is based on a national formula set in 2016.
The council said: “We have raised this issue with the Department for Education on many occasions over the years. But there has not been a positive response to the very reasoned arguments we have presented for a better rate of funding.
“For the sake of parents throughout the city we will continue to press the government on this.”
Councillor Sarah Nield, who speaks for the Greens on schools and early years, said: “Brighton and Hove has consistently raised with government the inequality in funding for free childcare places the city receives, as government set the funding level.
“Despite having a higher cost of living in the city, we remain the lowest rate in the south east.
“This causes real challenges for early years providers in our city balancing their books – something which was made even more stark during the pandemic.
“We will continue to raise this inequality and fight for fairer funding.”
Nursery and pre-school fees are due to be discussed at the council’s Children, Young People and Skills Committee next Monday (10 January).
The council has five nurseries and a pre-school providing funded part-time places for children from low-income families, and extra hours of childcare that parents pay for.
This year, the council’s subsidy for its nurseries is £695,000, with the largest proportion going to Jump Start at Moulsecoomb Children’s Centre and Roundabout Nursery in Whitehawk, where there are the highest numbers of government-funded two-year-olds and most children take up free places.
More children with child protection plans and special educational needs and disabilities use these two nurseries, which means they require a higher staff to children ratio.
A proposed fee increase of 1.6 per cent is proposed for council nurseries for paid hours, taking the hourly rate of £5.74 up to £5.83.
The increase is lower at Pavilion Pre-school, in North Portslade, with an increase from £5.66 an hour to £5.75. It shares its building with a football team.
The report going before the committee said: “There is a range of help from the government for parents with childcare costs in addition to the free early year’s entitlement of 15 or 30 hours.
“Parents on universal credit can claim up to 85 per cent of childcare costs and parents on higher incomes can apply for tax-free childcare which will pay 20 per cent of their childcare costs.”
The committee’s recommendations on fees and charges will be in the budget report presented to the council’s Policy and Resources Committee on Thursday 10 February which will then go before the Budget Council meeting on Thursday 24 February.
The Brighton and Hove Schools Forum, which includes representatives from early years providers, primary, secondary and special school head teachers and governors, is also due to discuss funding when it meets on Monday 17 January.
