Ministers ‘knowingly’ underfunded the early years sector, investigation finds

Amelia Cutting

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UK Ministers have been accused of knowingly underfunding the early years sector in England over the last ten years. 

This conclusion comes after a two-year investigation by a body representing the sector. It revealed that where childcare costs have gone up, the quality of them has gone down. 

The private Government briefing documents that were uncovered as part of the investigation found that the 2020-2021 early years funding rates for the Conservatives free childcare offer for 3 and 4 year olds is less than two thirds of what the government believed was needed to fully fund the scheme, the Early Years Alliance said. 

“the results come after a tumultuous two year freedom of information dispute”

The EYA shows that ministers were aware of the insufficient investment and what it would lead to: higher prices for the parents of young children, and the maximising of child-adult ratios which would lower the quality of services just to keep them afloat. 

Described as ‘shocking’ by Labour, the results come after a tumultuous two year freedom of information dispute between the Government and the EYA, and after a petition calling for an independent review of childcare affordability and funding reached 100,000 signatures. 

The EYA submitted its FOI request in December 2018. It originally asked for proof that the early years funding rates announced in 2015 and implemented in 2017 had been calculated correctly and were enough to cover the rising costs over coming years. 

The Department for Education rejected this request, despite a ruling by the Information Commissioner’s Office that the information should be released. They instead appealed to the First Tier Tribunal against the ICO’s decision. 

During the waiting period for a Tribunal hearing date, the Department claimed that it would publish the requested information as part of ‘wider government transparency documents’ and withdrew its appeal, providing the documents to the Alliance. 

A second FOI request was filed in April 2021 asking for the calculations behind government claims that the 1.2% increase in funding which came into effect that month would cover 2021’s uplift in the national minimum and living wages, as well as the extension of the latter to 23 and 24 year olds. 

The Alliance said the DFE rejected this request, stating that it is already planning to release the information itself and it is in the public interest to wait for it to do so. 

Children and family minister Vicky Ford stated in January at a meeting of the APPG for Early Education and Childcare that the Government would be releasing this information to the sector. 

According to an independent analysis provided by the childcare research agency Ceeda, the average early years funding rate given to local authorities in 2020-2021 was £4.89. This is a £2.60 shortfall, £2,964 over a year for children in receipt of 30 hour funding. 

The document produced, called the Early Years Spending Review Scenarios and marked ‘official sensitive’ also acknowledged that the introduction of the Conservatives’ 30-hour policy was probable to result in price increases by as much as 30% for parents where care was not covered by the free offer.  

The Alliance’s Chief Executive, Neil Leitch, said that “for years the early years sector has warned that the so-called ‘free entitlement’ offer is anything but free, in the face of repeated government claims that the policy is adequately funded. These documents, which they spend more than two years trying to hide, prove otherwise.” 

The shadow minister for children and early years, Tulip Siddiq, says: “The government owes parents an apology for this reckless underfunding of early years and for covering it up. Ministers must now change their failed approach to early years, which must start with urgent action to prevent further childcare closures.”

Featured image courtesy of Esi Grünhagen from Pixabay No changes or alterations were made to this image. Image license found here.