Maintained Nursery Schools Funding

Caroline Dinenage Excerpts

Wednesday 1st February 2017 Westminster Hall

[The Parliamentary Under-Secretary of State for Women and Equalities (Caroline Dinenage)]

It is an enormous pleasure to serve under your chairmanship, Ms Dorries. I, too, congratulate the hon. Member for Warrington North (Helen Jones) on securing this important debate, and indeed all the hon. Members from different parties who have taken part; they have spoken with great passion about their own experience of maintained nursery schools. It has been great to hear the support from across the House for these valuable educational providers.

The issue of maintained nursery schools is of huge importance. I am pleased to have the opportunity to set out very clearly the Government’s position on the valuable contribution that they can make, not only to the lives of disadvantaged children, but to the wider early years sector. I want to make it very clear that the Government are committed to exploring all options to address the issues that nursery schools face, and we remain committed to ensuring that nursery schools have a bright future and can continue to meet the needs of the communities they serve.

Nursery schools do indeed have an impressive history. Central to the development of the very early nurseries was the recognition that disadvantaged children could thrive and overcome their circumstances by attending nursery settings that blended both care and education. Today that approach is backed up by robust research. We know that the first few years of a child’s life are critical to shaping their future development. We also know that high-quality pre-school education reduces the effects of multiple disadvantage on later attainment and progress in primary school. In addition, we know that many maintained nursery schools go beyond the bounds of their immediate communities, using their pedagogical expertise to help other providers improve the quality of their provision.

In short, although maintained nursery schools are attended by only 2.8% of the two, three and four-year-old children who benefit from funded early education places, they nevertheless make a huge contribution to disadvantaged children and to the early years sector as a whole. Like other Members, I have seen that in my own constituency.

[Helen Jones]

If, as the Minister says, she understands and values the contributions that maintained nursery schools make, why did the Government create this problem by going for a flat funding formula? She says she is trying to put it right, but the problem is entirely of the Government’s own making, is it not?

[Caroline Dinenage]

I think that the hon. Lady is being a little narrow-minded. I was a mother under the previous Labour Government and both my children were in childcare. That Government presided over some of the most expensive childcare in Europe. I was literally working to pay for my childcare under her stewardship. We can all talk about past mistakes.

[Helen Jones]

rose—

[Caroline Dinenage]

If the hon. Lady sits down, I will make a little progress. [Interruption.]

[Nadine Dorries (in the Chair)]

Order. Ms Jones, you may get a chance to wind up at the end.

[Caroline Dinenage]

I put it on record that I want to preserve and promote the quality and expertise of maintained nursery schools. Social mobility is a high priority for the Government. That includes committing to the task of spreading existing best practice in high-quality early years provision across the whole system. We want all children, whatever their background and individual needs, to access the high-quality early education they deserve, wherever they come from. Nursery schools can play a valuable role in spreading that quality throughout the early years system, and many already do. I recently visited Sheringham Nursery School in Newham and saw at first hand the high-quality teaching and excellent system leadership it was providing to nurseries, private and voluntary providers and childminders across the local area. Many Members have already mentioned that issue.

Since I was appointed as Minister for early years in July, I have had many positive—but some challenging—conversations with nursery head teachers, staff and other early years professionals from across the country in an attempt to understand the issues these schools face. I have had a healthy flow of emails and letters from head teachers, governors and MPs on the subject of nursery schools. I really do understand the challenges they face. I have a very valuable one in my constituency, and I recognise the impressive support such schools have in their communities.

As my right hon. Friend the Member for Chelmsford (Sir Simon Burns) and the hon. Member for Manchester Central (Lucy Powell), who is no longer here, have mentioned, I spoke to the all-party parliamentary group on nursery schools and nursery classes last week. I was concerned by suggestions, as misquoted by the Opposition spokesperson, that 45 maintained nursery schools thought they faced closure. As a result, I asked my officials in the Department for Education to contact Pen Green, which is the maintained nursery that conducted the survey. Because the survey was confidential, Pen Green has gone to the relevant maintained nursery schools to ask whether it can pass us their names. I urge Members and those in the sector to speak to us. I would like my officials to speak to every single one of those 45 nurseries that think they face imminent closure so that we can get to the bottom of the issues.

It is clear that one of the key issues facing nursery schools is funding, which is related to the introduction of the early years national funding formula. I want to be quite robust about this: the Government are not making any cuts to early years funding. In fact, we are spending more money on this than any Government. By the end of this Parliament, we will be spending £6 billion a year on childcare. [Interruption.] We all know that some of our Labour friends and colleagues live in a fluffy bunny world of economics, where money grows on trees and we can all spend what we want, but £6 billion a year of taxpayers’ money is more than any Government have ever spent on this area. It includes more than £300 million a year for a significant uplift to our funding rates. For example, Warrington is seeing a 19% increase, Great Grimsby is seeing a 17% uplift and Manchester Central is seeing an 18% increase. [Interruption.]

[Nadine Dorries (in the Chair)]

Order. I do not ever tolerate in my debates chunnering from the Back Benchers when anyone is speaking. Please desist.

[Caroline Dinenage]

Thank you, Ms Dorries. Members will also know that I have committed supplementary funding for maintained nursery schools of £55 million a year. That is not for two years, as the hon. Member for Washington and Sunderland West (Mrs Hodgson) misquoted, but until at least the end of this Parliament, so that current funding rates can be maintained. It will be £56 million this year. I cannot remember who it was, but one Opposition Member said that we need to spend more money and that we are doing it on the cheap. I would like to take a moment to think about that figure: £6 billion a year is a huge amount and is taxpayers’ money, but it is the right amount and it reflects the Government’s commitment to providing the high-quality, affordable childcare that hard-working parents need.

[Derek Twigg]

I am intrigued by the Minister’s view on funding. Why do head teachers write to me saying that they have real concerns about massive funding cuts to their budgets?

[Caroline Dinenage]

I am more than happy to speak to the hon. Gentleman and any concerned providers in his constituency. We took a view to try to make the funding fairer across the country. We have also set in place a 95% pass-through rate, so that 95% of the money that local authorities get will go on to providers, and that will help. In some cases, local authorities were keeping back up to 30% of the funding.

I need to make some progress. We know that for historical reasons there were clearly unfair and unjustifiable funding differences between areas and between different types of providers. That is why we introduced the fair funding formula which maximises the amount passed on to providers while ensuring that all local authorities are adequately funded to secure sufficient early education, including that provided by maintained nursery schools. I recognise that nursery schools have costs over and above other providers because of their structures and because of the nature of the communities they serve. That is exactly why I announced the additional £55 million a year for local authorities to allow them to maintain existing levels of maintained nursery school funding at least until the end of this Parliament. The Opposition spokesperson asked me how that money will be distributed. It will go to the local authorities, with the presumption that 100% of it will be passed on to the maintained nursery schools. It will not be part of the 95%.

The hon. Member for Great Grimsby (Melanie Onn) asked about SEND funding. In our early years national funding formula response, we said that through legislation we are requiring local authorities to set up a SEN inclusion fund and publish the eligibility criteria and value of that fund at the start of the year. It will be a local decision on eligibility, but it will be made in consultation with the local early years provider. It should be focused on low levels and emerging SEN, so that we do not have the issues with having to wait so long to prove that children are eligible.

Looking ahead, Members have asked me to share what I see as my future priorities for nursery schools. Those have developed out of the conversations and discussions I have had with head teachers, staff and early years experts, and they build on examples of innovation and partnership working that many, but not all, nursery schools currently demonstrate. Nursery schools should focus on the needs of disadvantaged children and children with special educational needs and disabilities, but all of them can drive early years system improvement by providing pedagogical leadership. We can work in partnership with other local childcare providers, including childminders, to deliver better quality and practice. We can maximise the use of their skills, experience and resources to become more sustainable.

As Members know, we have committed to consulting openly on the future sustainability of nursery schools. That is the right approach. Nursery schools operate within a changing world and it is important to recognise that it might not be the case that nursery schools should provide more of the same, and in the same way. We need to ensure that they are focused on where they can have the greatest impact. The landscape for the delivery of children’s services is evolving. Partnership working is the norm in many areas, but practice is variable. Some local authorities, but not all, make full use of their nursery schools by commissioning services and asking them to co-ordinate or deliver quality improvement for their areas. System leadership of that sort makes very good use of nursery schools’ expertise and experience, and I want to encourage more of that.

However, some local authorities hardly engage with their nursery schools, leaving them isolated rather than drawing on the expertise and specialist resources they offer. The schools landscape is changing as more secondary and primary schools opt to convert to academy status and join multi-academy trusts. Moreover, all public bodies, including schools, are grappling with tight budgets. That will mean looking at how to deliver better value for money and getting the balance right.

We have a lot to bear in mind as we consider the future, but I think that we are coming from a strong starting point, given the tremendous track record nursery schools have in delivering rich learning experiences and high-quality early education to disadvantaged children, including those with special educational needs and disabilities. Our consultation will explore the vision in more detail, including the best ways to bring it about. I hope that those in the sector will take part and share their experience, wisdom and views with us once the consultation is launched. They certainly have not been shy in sharing those views with me so far. I appreciate it, and I sincerely hope they will continue to be honest and frank with me as we move forward together. The steps I have outlined will ensure the continuation of the important contribution that nursery schools make to the early years sector and the future opportunities of young children in deprived areas.

[Nadine Dorries (in the Chair)]

Ms Jones, would you like to wind up in the few seconds left?