Question to the Department for Education:

To ask the Secretary of State for Education, what estimate his Department has made of the effect of the January 2021 covid-19 lockdown on demand for childcare; and what plans he has to change funding arrangements for early years providers in the Spring term of 2021 due to the lockdown and potential implications for setting occupancy levels.

Whilst we recognise childcare attendance has been affected by the COVID-19 outbreak, we saw attendance rise over the autumn term from 482,000 on 10 September 2020 to 759,000 on 17 December 2020. On 17 December 2020, the government therefore announced a return to funding early years settings on the basis on attendance. In line with the existing and unchanged statutory guidance local authorities should ensure that providers are not penalised for short-term absences of children, for example sickness, arriving late or leaving early, or a family emergency through withdrawing funding, but use their discretion where absence is recurring or for extended periods, taking into account the reason for the absence and the impact on the provider.

We will fund local authorities in the 2021 spring term based on their January 2021 census. If attendance rises after the census is taken, we will top-up councils to up to 85% of their January 2020 census level, where a local authority can provide evidence for increased attendance during the spring term. This will give local authorities additional financial confidence to pay providers for increasing attendance later in the spring term.

For more info on use of Early Years Dedicated Schools Grant in Spring 2021, please see here: https://www.gov.uk/government/publications/use-of-free-early-education-entitlements-funding-during-the-coronavirus-outbreak/use-of-free-early-education-entitlements-funding-during-coronavirus-covid-19.

The early years sector has benefitted from the continuation of early years entitlement funding during the during the Summer and Autumn terms in 2020, and providers have been able to furlough their staff via the Coronavirus Jobs Retention Scheme. As long as the staff meet the other criteria for the scheme, schools and early years providers are able to furlough their staff if they have experienced a drop in either their income from parents or government. Eligible nurseries can also benefit from a business rates holiday and can access the business loans as set out by my right hon. Friend, the Chancellor of the Exchequer.

We stay in regular contact with the early years sector, including on this subject. We will be closely monitoring both parental take-up of places and the capacity and responses of providers.