“On the face of it, the Chancellor’s announcement in today’s budget of investment in Early Childcare and Education appears positive, but the devil is in the detail, much more of which is needed before the sector can be confident that it will make a real difference”
Claudine Bowyer-Crane, NIESR’s Associate Research Director
A necessary step for Early Childcare and Education
- The Chancellor announced new spending worth £300m to support parents and children through access to services such as family hubs, breastfeeding support and parental mental health. In addition, the budget includes £170m additional funding for the Early Years Sector by 2024-25, and an additional £150m in training for Early Years practitioners.
- This announcement is welcome and has the potential to make a significant difference to the early life chances of many children. Importantly, it recognises the vital role that Early Childhood Education and Care (ECEC) plays in ensuring children have the best start in life. The sector had been struggling before the pandemic and is now in a protracted crisis. Attendance rates have not reached pre-pandemic levels and in the year from July 2020 to July 2021, the number of childcare providers fell by 4,055. Childcare costs are rising, making access to ECEC difficult for families from areas of disadvantage.
- The announcement today follows a recent report from the Nuffield Foundation calling for a review of the ECEC system. The report found that funded places are not being taken up by many eligible families, and some policies are in fact contributing to a widening disadvantage gap.
- Government funding before today’s budget announcement has not been sufficient to fully cover the cost of funded places, meaning settings have to make up the shortfall by increasing costs for unfunded places. Moreover, despite being skilled practitioners, the ECEC workforce is typically poorly paid, with few opportunities for career progression, and a lack of recognition as professionals.
- The steps the Chancellor has laid out today could be indicative of a positive change in its approach to ECEC. However, until more details emerge it is not clear whether this investment will be enough in real terms to help this struggling but vital sector.
©️ Claudine Bowyer-Crane, NIESR’s Associate Research Director. 2021.