Question to the Department for Education:

To ask the Secretary of State for Education, with reference to the National Audit Office's report entitled Preparations to extend early years entitlements for working parents in England, published on 24 April 2024, what steps she is taking to increase the number of childcare providers operating in areas of deprivation.

In 2010 there was only 12.5 hours of childcare support for some families with 3 and 4-year-olds. This government has already significantly expanded that support, to 30 hours free childcare for working parents of 3 and 4-year-olds.

The department is now going further, making the largest investment in childcare in England’s history.

The rates for the new entitlements have been independently confirmed by the Institute for Fiscal Studies (IFS) to be well above market rates. The department is investing hundreds of millions of pounds to increase hourly funding rates and has allocated £100 million in capital funding for more early years (EY) and wrapround places and spaces.

The department has also launched a range of new workforce initiatives to boost EY staff numbers. The department’s recruitment campaign ‘Do something BIG. Work with small children’ is backed by £6.5 million and is raising the status of EY to boost the recruitment of talented staff.

On top of this, in order to further boost the workforce, the department has invited 20 local authorities to take part in a £4.9 million pilot to test whether financial incentives in EY would help boost recruitment in the same way it has for teachers. Up to 3,000 eligible joiners and returners to the workforce will receive a £1,000 tax-free cash payment, shortly after they take up the post. This is as well as an investment of £7.2 million to deliver Skills Bootcamps for Early Years which enables learners to progress on an accelerated Level 3 Early Years Apprenticeship. This builds on previous growth in the market. The total number of paid childcare staff increased by 12,900 (or 4%) from 334,400 in 2022 to 347,300 in 2023, and the overall number of places increased by 15,100 (or 1%) over the same period.

It is important to note that Under Section 6 of the Childcare Act 2006, local authorities are responsible for ensuring that the provision of childcare is sufficient to meet the requirements of parents in their area. The department has regular contact with each local authority in England about the sufficiency of childcare in their area including their work to support the EY workforce recruitment and retention. No local authorities have reported to the department that they do not have sufficient childcare places.

The department continues to monitor the recruitment of EY staff alongside the sufficiency of childcare provision and are committed to continuing to work with the sector understand how it can further support EY workforce recruitment and retention.

The department already has significant support in place for disadvantaged families.

In addition to the expanded entitlements, the government has also taken action to support parents on Universal Credit with childcare costs upfront when they need it, rather than in arrears. The department has increased support for these parents by increasing the childcare cost maximum amounts to £950 for one child and £1629 for two children.

The department already funds 15 hours of free early education a week for disadvantaged 2-year-olds and children with an education, health and care plan or a Statement of Special Educational Needs.

Over 1.2 million disadvantaged 2-year-olds have benefitted from 15 hours early education and care entitlement since the entitlement began in September 2013. 74%, or 124,200, of eligible children were taking up the 2-year-old entitlement for the most disadvantaged children, which is an increase in the take up rates from 72%, or 135,400, in January 2022.

The department also supports the most disadvantaged by investing in high quality early education, family hubs and local services, and by helping parents to support their child’s early language development at home.

It is important that local authorities reflect deprivation within their local funding approach. To support this, we have introduced a requirement for local authorities to ensure that the final funding rate they pay to providers for the disadvantaged 2-year-old entitlement is at least equivalent to the final rate for the 2-year-old working parent entitlement.