Reform funding for struggling early years sector, MPs urge

The All Party Parliamentary Group (APPG) for Childcare and Early Education wants to see funding shortages addressed in the government’s spending review.

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The cross-party group wants the review to provide a ‘catch-up’ premium of £2,964 per child each year under the 30 hours free entitlement to tackle a shortfall in funding.

The APPG has written to chancellor Rishi Sunak and education secretary Gavin Williamson calling for improvements to funding.

Evidence they have presented includes Early Years Alliance data showing a shortfall of £2.60 per child, per hour for every 30-hours place they provide.

Also being called for is a funding plan for early years that helps providers plan over a number of years.

Funding also needs to address rising costs, such as around the National Living Wage, says the APPG.

A simpler funding system is needed to ensure money follows the child through the early years system and is effectively promoted among parents, it adds.

Ministers also need to look at ways of tackling barriers to funding such as through business rates and VAT.

In addition, support for children with special educational needs and disabilities needs to be taken into account in funding.

“The early years sector is the fourth emergency service which has an essential role to play in helping our country build back better and level-up after the pandemic,” said APPG chair Steve Brine, who is Conservative MP for Winchester.  

“However, the evidence shows that the early years’ sector is under-funded and its dedicated professionals do not believe they are valued at the same level as other educators, despite the early years being a formative period for child development, which can have an indelible impact upon a child’s future.”

National Day Nurseries Association chief executive Purnima Tanuku said that early years providers are “an essential part of our national infrastructure, enabling parents to return to work and supporting local economies”.

“But the evidence shows that the early years sector has been underfunded for years for the excellent support it delivers. Parents, providers and politicians all recognise this and now the government must act.”

Meanwhile, the House of Lords Covid-19 Select Committee has written to children’s minister Vicky Ford calling on the government to mitigate the long-term impact of the pandemic on parents and families.

Action is needed to tackle under development of early years age children, say Lords.

This includes additional resources to early years providers to support additional needs of children to arise from the pandemic, including lack of contact with other children during lockdown.

The committee’s call for action has been welcomed by Early Years Alliance chief executive Neil Leitch. He said: “Early years providers are doing an excellent job in meeting the needs of the children in their care, but they themselves need adequate support to do so.

“The government must stop treating our vital sector as an afterthought and instead, put early years at the very heart of its education recovery programme.”