Source · Select Committees · Public Accounts Committee

Recommendation 16

16 Accepted

New early years entitlements focus on working families, but Department denies disadvantage for others

Conclusion
The Department is currently extending early years entitlements so that, by September 2025, eligible working parents with a child aged nine months and above will be entitled to 30 hours of early years childcare a week.48 The Department acknowledged the new entitlements focused on working families, but did not agree this could create disadvantages for 41 Q 36 42 C&AG’s Report, para 2.16 43 Qq 5, 6 44 C&AG’s Report, para 14 45 Q 22 46 Q 46 47 Qq 28, 46 48 C&AG’s Report, para 2.17 12 those children with unemployed parents. The Department pointed to the universal 15–hour entitlement for all three and four–year–olds, where it had seen an increase in take up. It also described the childcare entitlement for disadvantaged two–year–olds, and the early years pupil premium.49 The Department hoped this additional funding would encourage settings to accept disadvantaged children alongside those with working parents receiving entitlements.50
Government Response Summary
The government will continue to evaluate the rollout of Family Hubs and Start for Life services and has increased the Early Years Pupil Premium (EYPP) to up to £570 per eligible child per year, providing guidance to local authorities to ensure effective spending and working with EEF to monitor the impact of the uplift and explore barriers to take up.
Government Response Accepted
HM Government Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2026 3.2 The Family Hubs and Start for Life programme will continue to evaluate the rollout of their services overall alongside the delivery of individual elements. Evaluations will continue to be commissioned and led by independent evaluation teams. 3.3 In December 2024 the department announced a 45% uplift to the Early Years Pupil Premium (EYPP), increasing the amount of EYPP to up to £570 per eligible child per year – additional support for the most disadvantaged children. The department is keen to ensure that EYPP spend is used effectively by providers to improve children’s outcomes. To this end the department has published guidance, for the first time, to support local authorities in ensuring spend is used effectively. The department has also worked with the Education Endowment Foundation (EEF) to support the development and launch of practical, evidence-informed advice for early years setting leaders on maximising the use of EYPP in their context - Early Years Pupil Premium | EEF. 3.4 To expand the evidence base on EYPP the department will work with EEF to monitor the impact of the EYPP uplift who will commission an independent, comprehensive mixed- methods impact and process evaluation to explore the potential mechanisms linking EYPP uplift and supporting improved outcomes for disadvantaged children. 3.5 The department is, in parallel, engaging with a number of local authorities to explore barriers to take up.