Maintained Nursery Schools Funding

Derek Twigg Excerpts

Wednesday 1st February 2017 Westminster Hall

[Derek Twigg (Halton) (Lab)]

I have heard some excellent speeches today but I want to give particular credit to my hon. Friend the Member for Warrington North (Helen Jones) for her excellent speech.

Halton is the 27th most deprived borough in the country, and its maintained nursery schools are important not only to the general population but for the difference they make for children from deprived and poorer backgrounds. They can identify at a very early age children who will struggle all the way through school and the rest of their lives. They are particularly good at that. My constituency has three maintained nursery schools: Birchfield Nursery School, Warrington Road Nursery School and Ditton Nursery School. All of them have been in existence in Widnes for 75 to 80 years to support children’s early education and parents value them greatly. The headteachers have told me that they are extremely worried that the schools may not exist for much longer if the national early years funding formula goes ahead as planned. Early Education forecasts that 67% of nurseries will be unsustainable after transitional funding finishes.

The evidence is clear that the quality of early education makes the most difference in raising achievement for the most disadvantaged children. That justifies such large Government investment in early intervention. Quality is determined by the qualifications of early years staff and teachers. Nursery schools in Halton employ well-qualified and highly experienced headteachers and assistant headteachers, as well as taking on and mentoring newly qualified teachers who work with them as early years specialists. They also have a number of staff members with early years degrees, a qualified early years teacher and special educational needs co-ordinators who are qualified and experienced teachers who have offered support across other settings and enabled transitions and planning to take place to support the most vulnerable children. Again, early intervention is crucial.

[Daniel Zeichner (Cambridge) (Lab)]

I am grateful to my hon. Friend for taking an intervention and apologise, Ms Dorries, for not being here at the start of the debate. My constituency is very different to my hon. Friend’s, but it has the Fields Children’s Centre, which I have visited over many years. Does he agree that the work being done in this area is about far more than just childcare?

[Derek Twigg]

My hon. Friend is right. A whole sphere of things can make a difference. I will come back to that later in my speech, but he makes a very good point.

Halton is one of the 25% of councils that will lose money for early years in the revised formula. At present, early years is a priority for Halton and we feel there should be funding to support it—early years has always been a priority in Halton. The 2015 Ofsted early years report endorses the consistent evidence of other national research that the most effective early education is provided by such nursery schools. Over the past five years maintained nursery schools in Halton have annually increased the average points progress made by children in all settings. We can demonstrate outstanding progress for children with special educational needs and disabilities, English as an additional language and those children entering our schools with low levels of personal, social and emotional development—that is really important—communication and speech.

The headteachers in my constituency believe strongly that nursery schools are in jeopardy all over the country because the qualifications of staff and the leadership of headteachers mean that they cost more than any other sort of nursery. The current system of funding early education, or what seems to be now called childcare, assumes that what every nursery offers is broadly the same, but it is not. They cannot be funded in the same way because maintained and private provision have completely different structures. I hope the Government will understand and address that.

Nursery schools lead to the kind of outstanding early years education we want for every child in our country. They play a key role in supporting training in the early years sector including work placements, initial teacher training, qualified teacher status and postgraduate certificate in education placements. Nursery headteachers and staff want to be supported to operate as system leaders for the future to ensure that early years professionals continue to have quality training and development and are able to have a positive impact on young children’s learning.

The recent consultation showed no awareness of the reality of the funding crisis for maintained nursery schools, or of their remit and impact. Proposals should be founded upon research and a commitment to developing early years leadership. One headteacher told me:

“The consultation largely ignored social return on investment and places no weighting on rewarding those organisations mainly schools who have a statutory and moral imperative to support their communities.”

The proposed funding reform would effectively eradicate such nurseries, losing knowledge specialism and damaging the life chances of our most vulnerable children. Nurseries want reassurances from the Minister that the transitional funding mentioned in the consultation will get through to nursery schools and will be sufficient to keep them running while we move towards a new system and leadership model.

I recently asked my local authority, Halton Borough Council, about its view of the situation. People there told me that they will not know the final figures until they receive the census information in February. However, previous estimates based on this year’s funding show that the three nursery schools—even after applying the higher base rate for the maintained nursery schools—will face a shortfall for 2017-18. That takes into consideration the additional protection that nursery schools will receive. Halton Borough Council can only provide the higher base rate for one year, so the shortfall could rise in 2018-19 to £130,000. When the transitional protection is removed in two years, the shortfall could increase to between £160,000 and £190,000. Although the council is working with nursery schools on models and options to reduce the cost, it will struggle to save £130,000-plus, which might mean that it can no longer afford to retain our nursery provision. That is how serious the situation is in Halton, where securing good-quality early years provision is a particular challenge. If Halton ends up having to look at closure, it will be a considerable loss.

Before I conclude, I want to quote the headteacher at Ditton Nursery School, who told me:

“We have a higher base rate for next year (18-19) plus transitional funding for the following year. When this finishes we will have seen our individual budgets cut by between £50,000-60,000 but we have already cut staffing down to a minimum and although looking at a federated model are not sure we will be sustainable when additional funding finishes…Nursery schools drive high quality pedagogy across the sector. We provide outstanding support for Special Educational needs and disadvantaged children thus supporting their learning chances later in education. We offer partnership, innovation and system leadership within the sector, and also support Initial Teacher Training for Early Years. This would all be lost if we closed. We need to ensure that we retain high quality Early years staff to work with our children—they deserve the best.”

I stress that—they deserve the best. The headteacher continued:

“This is difficult when facing such uncertainty. We want to retain quality staff to ensure the best outcomes for our children.”

I recently visited Birchfield Nursery School and talked to the headteacher there. I was so impressed by what was going on; there was a range of support for young people in education and play, and so on. The right hon. Member for Chelmsford (Sir Simon Burns) made a very important point. Nurseries have seen an increase in the number of children who not only do not know how to play, but perhaps more surprisingly, are not able to speak at the age at which they should be able to start speaking. All the headteachers I spoke to said that. Even more surprisingly, that is the situation not just among poorer children, but across the sphere when it comes to talking and play. They said that children are told, “Get on and play with that,” and although most parents are still fantastic at helping their children to talk and at developing their education, a growing number of parents are not. The lack of parents talking and playing with their children is becoming a major problem for some schools. Dealing with that requires extra money and extra effort, and the schools are then making the difference, not some of the parents. Obviously they try and encourage parents to play with and speak to the children more—to have more conversations with them—but it is sometimes an uphill struggle. That is partly because of the nature of the society we live in, but in this respect nurseries are making a real difference to our children, particularly in deprived areas. That intervention is so crucial to helping children’s life chances. Maintained nursery schools have that impact because of the nature of teachers’ qualifications and experience, and because of how they work together.

I therefore urge the Minister to reconsider the plans. The real problem is that the Government are cutting education and funding, and they need to rethink that. She shakes her head, but she should talk to the headteachers. They tell me what is going on in their schools. This is not me making a political point; it is what headteachers tell me, so the Government need to think again about funding. At the end of the day we cannot lose these fantastic maintained nurseries—we must do all that we can to keep them.

--- Later in debate ---

[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.