The independent evaluation of the second year of the Welsh childcare offer’s implementation, carried out by Arad research, surveyed families using the offer and childcare providers.
According to the findings, the offer is particularly benefiting families on a low income, with two-thirds (66 per cent) of parents accessing funded childcare during the 2019 summer term earning the equivalent, or below, the national average.
Eligibility confusion
The biggest area of confusion for parents (and some providers) was the entitlement to childcare during holidays.
Parents are able to use the offer in the school holidays, but this is dependent on when their child starts accessing the offer.
If their child takes up the offer in the autumn term, they are able to use it during nine weeks of school holiday that academic year. This allowance is six weeks, if they start in the spring term, or three weeks, if they start in the summer term.
The main issue voiced by local authorities was that providers’ and parents’ lack of understanding around holiday entitlement can result in incorrect claims and bookings, adding to local authorities’ administrative burden.
The report said, ’Local authorities have refined their correspondence to parents to clarify how and when to use the holiday weeks but observed that there may be a tendency to plan over a shorter term than the longer term academic year resulting in parents using up their holiday weeks early and being surprised at having to pay for childcare during the summer holidays towards the end of the academic year.’
Other misunderstandings occurred because some parents did not understand how the offer affected tax-free childcare and other financial help with childcare e.g. tax credits, and understanding the difference between the early education element and the childcare elements of the offer, and how many hours were able to be used where.
Some local authorities had also come across examples of parents who had struggled to apply for the offer as they had tried to use the website for the childcare offer in England.
The Childcare Offer for Wales provides 30 hours a week of government-funded early education and childcare for working parents of three- and four- year-olds, for up to 48 weeks of the year.
It is made up of 10 hours a week of universal early education for all three- and four-year-olds from the term after their third birthday, delivered under a separate mechanism of Foundation Phase Nursery (FPN) provision, and 20 hours of government-funded childcare for working parents.
In August this year the offer was available in all 22 local authorities in Wales, delivered over a year earlier than originally planned. The Welsh government said that the evaluation is the first-time people from across Wales have given their feedback, as the previous report only covered the seven authorities initially trialing the offer.
Parents’ survey – key findings
An online survey of 3,890 parents was carried out, as well as interviews with 18 parents.
Other findings from parents surveyed include:
- 84 per cent have more disposable income
- 57 per cent feel work related decisions are more flexible
- 56 per cent have more opportunities to increase earning
- 45 per cent more opportunities for more training, learning and development
Alongside financial benefits, many parents interviewed reported that they experienced less stress and anxiety, because they were able to find childcare for their children.
The survey also showed that 39 per cent of parents using the offer were accessing Welsh-medium childcare for their children.
Providers’ experiences
Alongside seeking parents’ views, the research also spoke to 46 childcare settings who provide the offer, and received 869 survey responses from providers.
Almost two thirds (65 per cent) of providers surveyed during the second year, believe that it had a positive impact on their business profitability.
A similar proportion (62 per cent) also noted that the offer had a positive effect on the sustainability of their setting, with just over a third (36 per cent) seeing an increase in the number of children who attended their setting from the previous year.
The offer's influence on providers: Key findings - Childcare providers
Foundation Phase Nursery provision
The report found that in the second year of the offer’s rollout differences remain between the level of FPN provision available across settings and how FPN is administered across local authorities, particularly with respect to different dates and ages when children become eligible for the provision.
This has caused some administrative challenges and a call for more consistency across local authority areas.
The report said, ‘Other than isolated examples, there was no evidence from local authorities of parents choosing to take childcare hours and foregoing the FPN hours. However, local authorities continue to voice concerns that non-maintained providers who are currently contracted by them to deliver FPN will discontinue with this provision in the future.
‘Some non-maintained providers have already discontinued their provision of FPN due to, what they consider to be the more onerous workload, higher scrutiny and in many cases, lower funding rates received for delivering this in comparison to delivering the funded childcare element of the offer.’
However, attempts by some local authorities to introduce more consistency in the delivery of FPN across settings has, in a few cases, led to a net reduction in the total hours of FPN provision delivered to each child.
Recommendations
The report recommendS:
- encouraging further consistency in early years education policies across Wales to ensure the sustainability and viability of the wider childcare offer
- simplifying the delivery of the offer in considering future policies around its provision and the development of the vision for an integrated Early Childhood Education and Care system
- making further information, guidance and example scenarios available to parents and providers relating to the availability of offer funded childcare during school holidays
- the way in which funded childcare during school holidays is included within the Offer
- reviewing the current funding rate paid to providers delivering offer funded childcare
- making further information and guidance available to local authorities and providers to enable better understanding of how the additional support grant can or should be used
- providing further information and guidance relating to additional charges for local authorities as well as providers, potentially alongside examples of sample contracts and invoices
Purnima Tanuku, chief executive of National Day Nurseries Association Cymru, said, ‘We would agree wholeheartedly that there should be a consistent approach to the delivery of Foundation Phase across Wales and in particular funding rates should be aligned.
‘Crucially the childcare offer rate must be reviewed annually in line with rising costs, such as National Living and Minimum Wage. Our members are having to consistently increase their fees to parents to make up for the shortfall in funding and this situation can only get worse as staffing costs continue to rise. Equally we want clear guidance on charging parents for additional services which many providers have to do to remain sustainable.
‘The Welsh government should carefully consider enabling all high-quality childcare providers to deliver Foundation Phase. Currently some councils do not allow non-maintained nurseries to do this.’
Ms Tanuku said the report did not acknowledge the uncertainties that some PVI providers face regarding capital grant funding.
‘This is being used in some areas to develop new provision where there is capacity in existing provision, threatening displacement of childcare places,’ she said.
‘It’s clear that there is some confusion as to the number of weeks of funded provision that children are entitled to, so it would be very helpful for the Welsh Government to put out guidance for parents.’
Deputy minister for health and social services, Julie Morgan, said, ‘The childcare offer for Wales is delivering many positive benefits for families. Alongside the financial assistance it’s particularly heartening to hear that parents believe the offer is benefiting their overall well-being.
‘The Welsh economy is also receiving a boost thanks to the offer - not just childcare settings who have seen increased profitability but also other businesses who benefiting from families having more disposable income.
‘I want to thank everyone in the childcare sector, local authorities and other relevant parties who help deliver the childcare offer and have played a huge role in supporting families.’
- The full evaluation can be viewed here