Source · Select Committees · Education Committee
Fifth Report - Support for childcare and the early years
Education Committee
HC 969
Published 26 July 2023
Recommendations
2
Accepted
Commit government departments to effective cross-departmental working for childcare reforms
Recommendation
The childcare and early years education system is already spread across multiple departments and local authorities. Government must commit to effective cross- government working, both centrally and locally. This will be vital to ensure that these reforms are delivered effectively …
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Government Response Summary
The government agrees on the importance of cross-government working and provides examples of current collaborative efforts across departments like DfE, HMRC, DWP, and DHSC, and with local authorities, to deliver childcare reforms and support families.
Department for Education
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4
Accepted
Para 38
Collaborate closely with providers and local authorities to set sufficient childcare funding rates
Recommendation
The Department for Education should work closely and consistently with childcare providers and local authorities from across the country to set the funding rate at a sufficient level. Given that most childcare places will soon be government-funded, it is vital …
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Government Response Summary
The government acknowledges the importance of sufficient funding rates and details specific actions taken, including providing additional funding of £288 million for 2024-25 and confirming rates in the autumn, to ensure the sustainability of the childcare sector.
Department for Education
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5
Accepted in Part
Para 39
Consider greater ring-fencing of Early Years block for local authority Dedicated Schools Grants
Recommendation
We recommend the Government consider the case for greater ring-fencing of the Early Years block of each local authority’s Dedicated Schools Grant to ensure that more is passed on to the early years providers who are delivering the funded hours …
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Government Response Summary
The government commits to increasing the minimum pass-through rate for early years funding to 97% once the new entitlements are sufficiently rolled out. They currently require local authorities to pass on at least 95% of funding and are consulting on setting this rate on individual funding streams for 2024-25.
Department for Education
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6
Accepted
Para 40
Work with local authorities to identify and increase childcare provision in underserved areas
Recommendation
We recommend Government work closely with local authorities to identify areas where childcare provision is insufficient and with a view to increasing provision in these areas. It could be useful to begin with a focus on Education Investment Areas (EIAs).
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Government Response Summary
DfE agrees with the recommendation and is actively working with local authorities through regular contact, a new termly readiness self-assessment tool, and £12 million in delivery support funding to identify and address childcare sufficiency issues, including in Education Investment Areas.
Department for Education
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7
Accepted
Include childcare and early education as an infrastructure category in the Levelling Up Bill
Recommendation
We recommend the Government consider explicitly including childcare and early education as a category in the list of infrastructure set out in the Levelling Up and Regeneration Bill 2022–23. This would enable funding received through the levy to be allocated …
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Government Response Summary
The government states that the Levelling Up and Regeneration Bill already enables the Infrastructure Levy to be spent on childcare and early education. DfE has also updated guidance for local authorities, reinforcing the importance of securing developer contributions for early years and childcare facilities.
Department for Education
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8
Accepted
Para 48
Exempt early years providers from business rates and VAT; DfE must not reduce funding
Recommendation
The Government will soon be funding up to 80% of all childcare places in England, up from 50% before the Spring Budget. In recognition of this, and the public benefit that the whole early years sector is providing, the HM …
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Government Response Summary
The government does not accept the recommendation for new business rate exemptions or VAT zero-rating. Instead, it highlights existing measures like the business rates multiplier freeze, small business rate relief, and charitable rate relief that already provide support to early years providers.
Department for Education
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9
Accepted in Part
Remove barriers and introduce incentives to grow the childminder market
Recommendation
We recommend the Government work to remove or reduce the barriers preventing childminders setting up or continuing in businesses and consider developing more incentives to grow this market. It could do this, for example, by a) Allowing childminders to work …
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Government Response Summary
The government commits to providing a new childminder start-up grant fund of up to £7.2 million over two years, offering £1200 for agency-registered and £600 for Ofsted-registered childminders. It has also launched a consultation exploring further flexibilities, workforce support, and a new childminder-specific EYFS framework, but does not commit to all specific examples listed.
Department for Education
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10
Accepted
Para 93
Improve awareness of childcare support and reduce complexity for parents
Recommendation
Parental choice should be at the heart of any Early Years Care and Education policy to allow parents to choose what works best for their family. We welcome the Government’s acknowledgement that parents who need or want to work require …
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Government Response Summary
The government, to improve awareness, has committed an additional £1.2 million to the ongoing Childcare Choices marketing campaign, aiming to drive engagement with the website that brings together information on various support schemes.
Department for Education
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11
Accepted in Part
Para 94
Streamline funded hours entitlement system and reduce eligibility reconfirmation to annually
Recommendation
We recommend that the funded hours entitlement system be made more streamlined. For example, parents should be able to access childcare as soon as they receive an 74 Support for childcare and the early years eligibility code. The requirement for …
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Government Response Summary
DfE is exploring options for simplifying the application process and improving the user experience for parents accessing childcare entitlements and will review the frequency of reconfirmation alongside the roll out of the new entitlements.
Department for Education
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12
Rejected
Para 95
Stop describing 30-hours childcare as ‘free’; use ‘funded’ or ‘subsidised’ hours
Recommendation
To improve awareness and improve parental trust in the childcare subsidy system, we recommend the Government stop describing the 30-hours offer as ‘free hours’ and talk about ‘funded’ or ‘subsidised’ hours instead.
Government Response Summary
The government recognises the Committee’s view but will continue to use the term ‘free’ in its communications with the public, alongside ‘funded’ and ‘subsidised’ where appropriate.
Department for Education
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13
Rejected
Para 96
Develop better support for stay-at-home parents, including frontloaded benefits and expanded leave
Recommendation
We recommend the Government develop better support for parents who choose to stay at home with their children. For example, HMRC could explore ways to frontload child benefits to give parents more support in the early years when the economic …
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Government Response Summary
The government supports parents to make the choices that are right for their families, but has no plans to frontload child benefit or expand parental leave allowances.
Department for Education
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16
Accepted in Part
Para 99
Conduct fundamental review of tax-free childcare and launch public awareness campaign
Recommendation
The Government must do much more to ensure the support available for tax-free childcare is better understood and easier to access. We recommend HM Treasury conduct a fundamental review of tax-free Childcare with a view to making it simpler and …
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Government Response Summary
The government has committed an additional £1.2 million to an ongoing Childcare Choices marketing campaign to improve awareness of existing support. However, they do not commit to a fundamental review of Tax-Free Childcare to simplify its use, as recommended.
Department for Education
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17
Accepted in Part
Para 100
Expand national Family Hub rollout, commit to longer-term funding, and boost specific SEND family support.
Recommendation
We recommend the Government expand the Family Hub model and commit to longer-term funding. We would like to see a national rollout of family hubs at the earliest possible opportunity. In particular, the £50m fund for ‘Parenting Support’ and the …
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Government Response Summary
The government is investing £300 million to enable 75 local authorities to create family hubs, including £50 million for parenting support, which partially addresses the call for expansion and funding without committing to a national rollout or specific fund increases.
Department for Education
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18
Deferred
Make parents in training or education eligible for the 30-hours childcare entitlement.
Recommendation
We recommend the Government make parents in training or education eligible to claim the 30-hours entitlement. This will support single parents who need to retrain to secure more flexible work, and also support parents who are trying to re-enter the …
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Government Response Summary
The government will consider making parents in training eligible to claim the 30-hours entitlement and DWP will keep policies under review to support single parents.
Department for Education
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21
Rejected
Para 123
Monitor staff:child ratio changes, reverse if quality suffers, and develop comparable staff qualifications.
Recommendation
We recommend that the Government’s controversial changes to staff:child ratios be closely monitored and reversed if quality and education outcomes are seen to suffer. If the Government’s goal is truly to “bring the UK in line with Scotland and comparable …
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Government Response Summary
The government has proceeded with changing staff:child ratios from 1:4 to 1:5 for two-year-olds and does not commit to reversing this change if quality suffers, but highlights efforts to improve workforce quality through reviewed Level 3 qualification criteria and a consultation on EYFS flexibilities.
Department for Education
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22
Accepted
Para 124
Review Level 2 English and maths requirements for ECEC staff, prioritising numeracy quality.
Recommendation
In the short term, to prevent the existing qualification levels of falling any further, the Level 2 English and maths requirements for ECEC staff to count in staff:child ratios should be reviewed , and alternatives considered that are more tailored …
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Government Response Summary
The government has launched a consultation to remove the Level 2 English and maths requirement for early years practitioners and is analysing responses, while also expanding the Early Years Professional Development Programme with a new maths module to prioritise numeracy teaching tailored to the sector.
Department for Education
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23
Rejected
Reintroduce a Leadership Quality Fund for diverse early years professional qualifications.
Recommendation
The Government has acknowledged the importance of graduate leadership in the ECEC sector. It should now listen to sector-wide calls for an equivalent of the Graduate Leader’s Fund to be reintroduced. We recommend that this is given a broader name, …
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Government Response Summary
The government does not commit to reintroducing a fund equivalent to the Graduate Leader’s Fund, stating it no longer exists. Instead, it highlights existing and alternative support mechanisms for the early years workforce, including increased entitlement funding, a national recruitment campaign, EYITT funding, and the National Professional Qualification in Early Years Leadership, while also considering new apprenticeship routes.
Department for Education
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24
Acknowledged
Para 152
Make career development for early years practitioners an urgent priority to attract and retain staff.
Recommendation
Early years professionals are vitally important. We recommend career development for early years practitioners be made an urgent priority in order to attract and retain more people in the profession. We are concerned about lack of parity of esteem between …
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Government Response Summary
The government acknowledges the importance of early years professionals and states that workforce support and career development remain a priority, outlining existing programmes and ongoing efforts to explore how best to recruit and retain staff, including funding training for up to 7,000 early years SENCOs.
Department for Education
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25
Accepted in Part
Para 153
Engage Local Authorities to provide affordable and flexible mandatory training for early years professionals.
Recommendation
We recommend the Government engage with Local Authorities and seek to address the cost of mandatory training required by early years professionals, such as paediatric first aid and safeguarding courses. Local Authorities should work towards providing 76 Support for childcare …
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Government Response Summary
The government commits to engaging with local authorities to assess the availability, accessibility, and associated costs of mandatory safeguarding and welfare training for early years professionals, but does not commit to providing free or heavily reduced training or greater timing flexibility.
Department for Education
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26
Accepted in Part
Para 154
Develop a comprehensive Early Years Strategy, expanding the Early Career Framework and promoting National Professional Qualifications.
Recommendation
We recommend the Government ensure that the early years Sector is seen to be, and feels itself to be, a valued profession. To achieve this, we recommend the Government develop a comprehensive Early Years Strategy with a strong focus on …
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Government Response Summary
The government acknowledges the importance of workforce development and engagement but states there are currently no plans to expand the Early Career Framework to the early years sector. However, it is promoting and fully funding the National Professional Qualification in Early Years Leadership (NPQEYL), working to encourage take-up in PVI settings, and continues to engage with the sector.
Department for Education
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27
Rejected
Incentivise early years settings to provide higher pay for staff development and promotions.
Recommendation
Staff development and promotions in Early Years settings should be met with higher pay. We recommend the Government consider how best to incentivise and fund settings to do this, for example by setting standards for staff pay as a condition …
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Government Response Summary
The government states it will continue to explore options for workforce recruitment and retention but has no plans to set staff pay rates for early years settings, anticipating that increased funding for new entitlements will give providers greater opportunity to increase wages.
Department for Education
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30
Accepted
Para 181
Introduce mandatory SEND training for all ECEC practitioners within the EYFS Statutory Framework.
Recommendation
It is clearly inadequate for only staff with Level 3 qualifications in Early Childhood Education and Care (ECEC) to be trained in identifying and supporting Special Educational Needs and Disabilities. There are many other staff involved in a child’s care …
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Government Response Summary
The government states that updated Level 3 and existing Level 2 qualification criteria and Teacher Standards already include specific modules on SEND identification and practice for early years educators and practitioners. They have no further plans to update Level 2 criteria.
Department for Education
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31
Deferred
Para 182
Review and digitise Early Years SENIF application process, ensuring funding reflects specialist care costs.
Recommendation
We recommend the Government work with local authorities to address the huge delays in Early Years SEN Inclusion Fund (SENIF) funding by reviewing the application process for providers. Similar approaches to the Education Health and Care Plan reforms should be …
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Government Response Summary
The government is reviewing the operation of SEN Inclusion Funds and working with stakeholders to identify improvements for better outcomes and appropriate funding arrangements, in line with the SEND and AP Improvement Plan.
Department for Education
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32
Accepted in Part
Increase Early Years Pupil Premium and widen eligibility for low-income children needing SEND support.
Recommendation
We recommend the Government increase the Early Years Pupil Premium (EYPP) to match that in primary schools and widen the eligibility criteria so that more children from very low income families can access much needed extra support for any special …
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Government Response Summary
The government is proposing to extend EYPP eligibility by age to all children from 9 months to 4 years old from April 2024, if they meet other criteria. However, it is not proposing to change other eligibility criteria or increase the premium to match primary schools.
Department for Education
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Conclusions (8)
1
Conclusion
Acknowledged
Para 18
The Spring Budget announcements are a welcome sign that the Government has realised that urgent care and attention is needed in the childcare and early years education market. We particularly welcome the additional funding for Universal Credit entitlements and the additional investment in extending the subsidised hours, but feel that …
Government Response Summary
The government welcomes the report and acknowledges the committee's appetite for further system change. It highlights the significant investment and transformative reforms announced in the Spring Budget 2023, including increased Universal Credit entitlements and extended subsidised hours, as its commitment to improving childcare.
3
Conclusion
Accepted
Para 37
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, …
Government Response Summary
DfE recognises the importance of sufficient funding rates and current pressures, detailing additional funding provided through the Early Years Supplementary Grant and further uplifts for 2024-25, totalling £288 million. Funding rates for 2024-25 will be confirmed in the autumn.
14
Conclusion
Acknowledged
Para 97
Despite some witnesses recommending the withdrawal of tax-free childcare and the use of the funding elsewhere, we recognise the benefits of the more flexible support it can provide, especially for wrap around care for school age children. Therefore, we do not believe that withdrawal would be in the interests of …
Government Response Summary
The government details the existing range of childcare support, including Tax-Free Childcare, affirming its continuation in line with the committee's conclusion not to withdraw it.
15
Conclusion
Accepted
Para 98
Parents who choose to care for their children at home do important work. With better support, parents would have more of a choice over whether they work or stay at home and have better flexibility to respond to their family’s needs. More support would also help parents in developing a …
Government Response Summary
The government recognises the importance of supporting families and is investing £300 million to establish 75 local family hubs, including £50 million for parenting support, to provide coordinated local support and advice for parents.
19
Conclusion
Accepted
Para 121
Where children are in Early Childhood Care and Education, it should be a high- quality, safe and supportive environment. ECEC should primarily be for the benefit of children. Prioritising the ‘quantity’ of available childcare to get parents back to work over the ‘quality’ of that childcare risks damaging children’s development …
Government Response Summary
The government acknowledges the importance of high-quality, safe early childhood care, stating that its reforms are underpinned by this principle and highlighting existing measures like the EYFS framework, its 2021 reforms, and investment in workforce quality.
20
Conclusion
Acknowledged
Para 122
We note that there is less data about the benefits of formal ECEC on children under two years old as studies have focused on children who were receiving the funded entitlement. It will be important to ensure that there is a robust evidence base for this age group is developed …
Government Response Summary
The government recognises the Committee’s recommendation and will continue to monitor the evidence base as they roll out the expansion of the entitlements.
28
Conclusion
Accepted
Para 179
It is widely recognised that effective early intervention and support is vital for improving outcomes for children with Special Educational Needs and Disabilities (SEND). We are glad to see the Government’s renewed focus on early years training for SEND through SENCOs and its proposals to include SEND in the Early …
Government Response Summary
The government acknowledges the vital role of early SEND identification and intervention, confirming that the newly revised Level 3 early years educator qualification criteria from September 2024 and existing Level 2 Practitioner criteria include dedicated sections on SEND identification and practice.
29
Conclusion
Accepted
Para 180
Equipping all ECEC practitioners with the skills to identify and support Special Educational Needs (SEN) would help settings better identify and support children with lower level SEND in-house and reduce the number of applications for diagnosis or additional support through an Education Health and Care (EHC) plan, or a speech …
Government Response Summary
The government acknowledges the importance of equipping early years practitioners with SEND identification and support skills, affirming that updated Level 3 Early Years Educator qualification criteria from September 2024 and existing Level 2 Practitioner criteria include dedicated sections on SEND.