Childcare

Lord Storey Excerpts

Monday 22nd January 2024 Lords Chamber

[Baroness Barran (Con)]

I think the noble Baroness is aware of a number of the measures that we have announced. She raises the issue of too few providers, but she will be aware that last year the number of places rose by 1% and staff numbers rose by 4% to 347,300. We are launching a new recruitment campaign to boost interest in early years careers, and we have already made some changes that will boost capacity, including changing the staff to child ratio from 1:4 to 1:5, which we introduced in September, and changing the requirements on nursery practitioners at level 3, who no longer need to have a maths qualification to fulfil the role.

[Lord Storey (LD)]

My Lords, according to Ofsted, the number of early years places fell by almost 18,000 in the 12 months to August 2023. The DfE’s own figures show that there are now over 11,000 fewer childminders operating than five years ago. Meanwhile, the BBC estimates that the demand for places is likely to rise by more than 100,000 additional children before the full 30-hour expansion is in place in September 2025. How will the Minister ensure that there are enough providers and spaces for this funding expansion to have any positive effect?

[Baroness Barran (Con)]

I addressed some of the noble Lord’s points in my earlier Answer, but he is of course right that the number of childminders declined by 10% last year. However, he will be aware that childminders typically have much smaller numbers of children—hence my remarks about the additional number of places, which rose last year. The Government’s additional actions are to increase the hourly rates paid to local authorities, which are increasing significantly, to £11.22 on average for children under two, but also with increases for other age groups.

--- Later in debate ---

[Baroness Barran (Con)]

I hear the concerns of the noble Baroness about space and staff, although I would point out that we believe the growth in demand for places will be at its greatest towards the introduction in September 2025. So there is quite a lot of time for us to be working with the sector and building capacity. I absolutely reassure the noble Baroness that colleagues in the department and my honourable friend the Minister for Children and Families work very closely with those in the sector and listen carefully to their demands.

[Lord Storey (LD)]

Does the Minister accept the comments made by the chief executive of the Early Years Alliance, which represents 14,000 nurseries, childminders and preschools, that it would be “financial suicide” for providers to offer places without knowing the funding level they will receive? He said:

“You cannot run a nursery if you know what your costs are but you have no idea what your revenue is likely to be”.

[Baroness Barran (Con)]

I addressed this in answer to the question from the noble Lord, Lord Kennedy. In November last year, we gave all local authorities their funding rates. It is for them then to communicate with local providers on what the specific rates and the range of rates will be in their area.