Select committee: Education Committee
Conclusion 3
Fifth Report - Support for childcare and the early years
Published 26 Jul 2023
Paragraph 37
Addressed to Department for Education
Education Committee Support for childcare and the early years All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
The childcare market is struggling, with unprecedented numbers of Early Childhood Education and Care (ECEC) professionals leaving the sector and parents struggling to find appropriate care across the country. The Spring Budget expansions of the funded entitlements place further demand on a struggling sector. To successfully deliver the Budget proposals, the sector needs radically more financial and regulatory reform, including, most importantly, a sufficient funding rate for the funded entitlements.
From: Education Committee, Fifth Report - Support for childcare and the early years (HC 969), paragraph 37, 26 July 2023
Government response
The government responded to the whole report on 17 October 2023 (deadline 26 September 2023).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government welcomes the Committee's report and says it is "in full agreement" on the value of childcare and early education, agreeing with some recommendations and declining others, such as VAT and business rates changes.
- On childminders, it says amendments to the Levelling-Up and Regeneration Bill, which it expects to "come into effect from autumn 2024" pending Royal Assent, will raise the number who can work together from 3 to 4 and allow work on non-domestic premises.
- On business rates and VAT, it states it "currently has no plans to make changes" to business rates support for early years businesses or the nursery VAT exemption.
- On local authority funding, it says it intends to increase the minimum pass-through rate from 95% to 97% "once the roll-out of the new entitlements is sufficiently progressed", and will keep the timing "under review".
- On the 30-hours reconfirmation period and funded hours for related childminders, it states there are "no plans at this time" to change eligibility checks and "currently no plans to change" the family-childminder position.