The latest childcare report from IPPR (The Childcare Challenge: How can the government deliver a real childcare guarantee), commissioned by Save the Children UK, was published this week. It comes at a critical time as just last week the UK Government announced their aim for 75% of children to be ‘school ready’ by 2028, up from 68%.
This target reflects a shift in focus for the UK Government from childcare to child development and has the potential to make a real difference to the lives of children in the UK. Good quality childcare is critical not just because it enables parents to access paid employment, but because it has the power to address inequalities children face before they enter school.
Given the importance of childcare in families’ lives, it’s deeply concerning that the findings in this new report reveal that only one third of the poorest fifth of parents with young children use formal childcare, compared with two-thirds of those in the highest earning households. This is in part due to the lack of childcare places and the lower quality of childcare in more deprived areas as well as the exclusion of some families from the funded hours offer.
The challenges facing the childcare sector could undermine the Government’s target around school-readiness and see the attainment gap between children experiencing financial disadvantage compared with those who aren’t increasing.
Way forward
The report identifies three ways in which the Government can address inequalities in childcare and successfully roll-out the expansion of the funded hours next year.
1. Providing fair and sustainable funding
2. Making sure places match the needs of all families
3. Linking up childcare and early years support services
Fair and sustainable funding
Providers have long highlighted that the funding rate provided by the Government doesn't cover costs. However, raising funding rates alone won’t address the problems of quality and sufficiency in economically deprived areas. That requires a more targeted approach.
The Government’s announcement this week that they will provide a £75 million expansion fund for childcare providers is therefore welcome news. As is the announcement that the Early Years Pupil Premium has been raised by 45% to £570 per child per year. A change Save the Children has long been calling for.
However, more changes are needed to fully tackle inequality within the early years. This should start with an increase in the proportion of funding for providers in deprived areas and a new ‘development needs’ funding element where the number of children with emerging SEND needs (Special Educational Needs and Disability) is above the national average.
Matching childcare places with needs
While increased funding will help to stabilise the sector, broader systems change is needed to ensure that providers fill the needs in more deprived areas. This will require a larger and more proactive role for Local Authorities in supporting providers and commissioning childcare where there are gaps.
Moving beyond childcare to holistic early years support services
The Government’s target to increase the number of children who are school-ready won’t happen in isolation. As identified in IPPR’s report, we need to move beyond childcare to create more cohesive early support services for families in the UK which families can - and do - access. This requires investment in childcare staff who are the face of early years services for most families. Learning from the previous Sure Start system shows that if done well, bringing together these services could be a game changer for children and families experiencing financial hardship or exclusion.
Ambitious vision
At Save the Children, we believe that all children deserve a decent start in life and access to childcare is a critical part of that. Building on the recommendations within this report, ultimately the Government needs to move towards a universal offer for all 2-year-olds regardless of their parents’ employment, relationship or immigration status. Only once childcare works for children experiencing financial hardship will childcare work for the entire country.
