Maintained Nursery Schools Funding

Debate between Derek Twigg and Caroline Dinenage

Wednesday 1st February 2017 Westminster Hall

[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.