News

'Substantial’ drop in take-up of funded places fuels concern for early years sector

Newly released Government figures reveal the number of eligible two-year-olds registered for a funded place with nurseries or childminders has fallen by 13 per cent.
The Government statistics reveal the number of disadvantaged two-year-olds registered for a funded place are down to 2008 rates
The Government statistics reveal the number of disadvantaged two-year-olds registered for a funded place are down to 2008 rates

As of 13 January, 62 per cent (124,500) of eligible two-year-olds were registered for the 15 hours, down from 69 per cent in 2020.

The statistics also show that take-up of three and four-year-old places is still not back to pre-pandemic levels, with numbers down by 5 per cent for both the universal and extended hours.

According to the Department for Education (DfE), take-up of the universal 15 hours is now at its lowest level since it was first measured in 2008.

It states that, ‘The decrease in the number and proportion of children registered to receive funded entitlements reflects the impact of Covid-19 uncertainty on supply (providers) and demand (parents) for early years provision in January 2021.

‘The decline may be due to parents delaying registering their children for places as a result of the pandemic,’ it adds.

Sector reaction 

The National Day Nurseries Association (NDNA) has warned that the reduction in demand could damage children’s development and threaten the sustainability of the childcare market.

Chief executive Purnima Tanuku said, ‘These newly released statistics are really worrying, not least because of the substantial drop in numbers of eligible two-year-olds taking up places. These are the children who really need to take up high-quality learning and care in order to achieve their potential and reduce the widening attainment gap.

‘The vast majority of funded places are provided by the private, voluntary and independent nursery sector. Our members have told us there has been a reduction in the numbers of parent-paid children, so if funded numbers have also dropped, they will struggle to remain on a firm financial footing. This could put the whole sector in jeopardy.

‘The Government must support parents of the most vulnerable children to make sure they take advantage of early years education and also give urgent financial support to the nursery sector to ensure there are enough places available for all children who want and need them.’

Neil Leitch, chief executive of the Early Years Alliance, said,With the number of children registered for early entitlement places falling sharply compared to previous years as a result of the pandemic, it’s clear that the Government’s decision to fund early years providers based on the number of children on roll, rather than on pre-pandemic attendance levels, falls short of the support needed. 

‘Add to this the additional pressures of frequent closures due to self-isolation and illness, the additional costs associated with remaining Covid-secure and the long-running challenge of underfunding more generally, and it’s obvious that much more needs to be done to ensure that the early years sector is able to remain sustainable throughout the pandemic and beyond.’

  • The Government statistics are available here