The Education Committee has published a new report, ‘Support for Childcare and the Early Years’ following an inquiry into the affordability of childcare and early years education it launched last December.
Within the report, the Committee calls on the Department for Education (DfE) to ‘work closely and consistently with childcare providers and local authorities to set the funding rate for the extended 30 hours at a sufficient level.’
It also says that the DfE should stop describing the hours as ‘free’ and instead refer to them as ‘funded’ or ‘subsidised’ after parents said that the ‘free’ label was misleading given the hours are term-time only and many providers charge for additional hours or consumables.
The Education Committee makes a number of other recommendations including:
- Simplifying the ‘complex’ system of applying for the 30 hours entitlement.
- Extending the 30 hours offer to parents who are studying or in training.
- Abolishing business rates for nurseries and making PVI settings exempt from paying VAT on business purchases and capital spending. The cross-party MPs say there are ‘widespread’ concerns that if settings expand to meet the additional demand for the new funded hours, they will have to pay higher business rates.
- For a ‘fundamental review’ of Tax-Free Childcare, which is seen as ‘complex and underused’, to be carried out.
- Amending the EYFS to make training on SEND mandatory for early years staff.
- Committing to long-term funding of Family Hubs and rolling them out nationally.
- Expanding the Early Careers framework – used to define training for new teachers – to apply to all staff working in Ofsted registered early years settings to improve retention and boost career development.
- Introducing a Leadership Quality Fund.
- Removing barriers for childminders operating from social housing.
- For the Government to review and update its 2017 Early Years Strategy in light of the childcare policies announced in the Spring Budget.
'Extending the number of hours that the Government calls free will not work unless funding rates accurately reflect the costs.'
Education Committee Chair Robin Walker MP said, ‘Our inquiry took a deep dive into how the sector could function better and how well it serves young children and parents.
‘Simply extending the number of hours that the Government calls free will not work unless the funding rates accurately reflect the costs of providing high-quality early education and childcare.
‘There are holes that need fixing in the complex patchwork of benefits and schemes available to parents, and not reforming the onerous workings of the Tax-Free Childcare scheme was a missed opportunity. We are also concerned that parents who are studying and upskilling are not well enough supported, which runs contrary to the Government’s own agenda.
‘Staff are the lifeblood of this sector, and the huge expansion of subsidised childcare will only be successful if we can stem the tide of people leaving the workforce. There needs to be a revamp of career development, with improvements to pay, progression and conditions so that the profession is given the respect and status it deserves.
‘Throughout this inquiry, there was no shortage of people ready to point out flaws in the system. But there was a great deal of praise for the brilliant people who work with young children and strong evidence that with the right support they can do more. There was also an abundance of practical ideas to revive the childcare sector and update the offering to young families. We look forward to the Government’s response to our recommendations.’
'Without a magic goose laying golden eggs, nurseries will struggle.'
Unions, including the NEU and Community, welcomed the Education Committee’s recommendations.
The Sutton Trust, however, said it would have liked the Committee to have gone ‘much further’, referencing its own recommendations to the Government – expanding the 30 hours entitlement to lower-income families and increasing the Early Years Pupil Premium.
NDNA’s chief executive, Purnima Tanuku, said that the Committee has made some important recommendations, but argued ‘without a magic goose laying golden eggs, nurseries will struggle to make this a reality.’
Neil Leitch, chief executive of the Early Years Alliance, said he hoped the Committee’s findings ‘finally wake the Government up to the reality of the situation facing families and providers and prompts urgent and effective action.’