I thank the hon. Lady for her question. When it comes to the take-up of the two-year-old offer, which is particularly targeted at disadvantaged backgrounds, there is a huge discrepancy between different parts of the country. For example, there are parts of London where up to 70% of families have taken it up, and other parts where it is far lower. That is why I encourage Members to get in touch with me if they want and I will tell them about the take-up in their area. As I said, there are areas where seven out of 10 families are taking it up and are continuing to do so. I will talk more about disadvantaged families later.
As the hon. Lady is aware, the Government can also help with 85% of childcare costs for universal credit claimants even if they work only a few hours a week. I know it can be challenging to claim, but it is important to recognise that it is there. In my own jobcentre, the job coaches are working closely with parents to help them with making a claim that so that they can get back into work.
Wraparound childcare is also important as it not only supports parents so they can work but can benefit children and young people’s mental health and wellbeing, and their educational and social development. I was absolutely delighted to go around the country this summer looking at our holiday activities and food programme, which has ensured that thousands of school-aged children on free school meals have had access to childcare as well as exciting activities and food. I thank all Members who visited their HAF programmes this summer. It is the first time that we have ever had
anything like that type of project for our children. Of course, we piloted it for three years, but this year it has been all across the country, and local authorities are already setting out their plans for Christmas.
The Government invest a significant amount in early education and childcare, including £3.5 billion for each of the past three years on funding our entitlements for two, three and four-year-olds. In November 2020, the Chancellor announced another £44 million investment for this financial year to help local authorities increase their hourly rates paid to childcare providers. All local authorities have seen an increase of at least 8p an hour in the two-year-old entitlement. The vast majority of areas have had an increase of 6p an hour for three and four-year-olds. Significant increases were also made for hourly rate entitlements funding in 2019.
Several hon. Members from London constituencies mentioned the cost of childcare in London. It is important to note that we pay a higher funding rate for those entitlements in areas where business costs are higher. The average hourly funding rate for a three or four-year-old across all of England is £4.91, but the equivalent for London is notably higher at £6.11. The hon. Member for Hampstead and Kilburn (Tulip Siddiq) may be interested to know that in her constituency, the amount we pay to Camden is one of the highest in the entire country at £8.51.
My hon. Friend the Member for Winchester (Steve Brine) mentioned the spending review. As hon. Members know, we are already working on a multi-year spending review. In the Department for Education, we are absolutely continuing to press the importance of early years care and education right across Government as part of that spending review. Given that we are in the middle of spending review negotiations, it would not be appropriate to launch a separate independent review of childcare at this time because the outcomes of such a review would not be able to feed into the speeding review that is happening right now. We expect the outcome of the spending review to be announced later this year. My hon. Friend also mentioned closures.