Source · Select Committees · Petitions Committee
Recommendation 16
16
Accepted
Paragraph: 57
Despite childcare settings being allowed to remain open since summer 2020, levels of activity remain...
Conclusion
Despite childcare settings being allowed to remain open since summer 2020, levels of activity remain below pre-pandemic levels. We welcome the steps taken by the Government to support the sector financially during covid-19, but this has not prevented many providers seeing a significant impact on their finances. With ongoing uncertainty about future demand for their services, there is a real risk the pandemic will contribute to an ongoing erosion of provision or even act as a tipping point and accelerate this trend. Long-term, targeted support from the Government will be required to avoid this outcome, which would have serious consequences for children’s early education and parents’ workforce participation.
Government Response Summary
The government details over £3.5 billion spent annually on early education entitlements, plus an additional £510 million over three years for early years entitlements. They also outline existing support through Universal Credit and Tax-Free Childcare, aiming to provide long-term support for the childcare sector, while stating they will not launch an independent review of childcare at this time.
Paragraph Reference:
57
Government Response
Accepted
HM Government
Accepted
and individuals. Across almost all areas of economic policy, we are providing comparable or greater support than all our international peers. And, as the Office of Budget Responsibility, the Bank of England, and the International Monetary Fund have all recognised, our economic response is making a difference saving jobs, keeping businesses afloat, and supporting people’s incomes. When looking at all provider types, Ofsted’s data, published on 30 June, shows there were 72,000 childcare providers registered with them on 31 March 2021, a decrease of 4% (3,300) since 31 August 2020. The overall picture behind this reduction is more complex, however. 8 Government Response: Impact of Covid-19 on new parents: one year on Also within Ofsted’s latest figures, there are currently 1.3 million places available for children in nurseries and with childminders. This means that the number of places offered by providers on the Early Years Register has remained broadly stable since August 2015. joining Ofsted’s register. For example, childminders, who can only provide six childcare places unless they have an assistant, are leaving the register at a higher rate compared with nurseries. Nurseries, whose numbers remain fairly stable with a drop of just 1% since 31 August 2015, can care for a much larger group of children. Additionally, the number of places that these providers offer has been increasing over time. It is important to look at the total number of childcare places as well as the total number of providers to understand the bigger picture. Early education and childcare is delivered by a market that, in terms of the number of childcare places, is supplied to a significant extent by private businesses. As with any private market, responses to changes in demand, and a degree of churn, are parts of the normal operation of the market over time. or places on offer, but whether the supply of places available is sufficient to meet the requirements of parents and children. To this end, the majority of eligible two, three and four-year-olds have continued to access free childcare despite the challenges faced throughout the pandemic. Local authorities are not reporting any significant sufficiency or supply issues. We have not seen a significant number of parents unable to secure a childcare place, either this term or since early years settings re-opened fully on 1 June 2020. We continue to evaluate the sufficiency of childcare provision, and endeavour to help both parents and providers to ensure the sustainability of the sector.