Commons Sense

House of Commons · Ministers' Questions

Early Years Providers: Financial Stability

Monday 18 January 2021 · 5 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 5 Not answered 0

Key points

  • Ministers have given unprecedented support to early years providers through block-buying childcare places and various schemes including furlough.
  • Advice was issued to count temporarily absent children for the census week, provided nurseries remain open.
  • Additional funding for early years entitlements has been announced, increasing hourly rates based on local disadvantage.

Topics (select to filter)

Questions & Answers

Q1 Karl Turner Ind Kingston upon Hull East
Children & Families
Context

The MP raises concerns about financial instability affecting early year's services due to the ongoing impact of the COVID-19 outbreak. He highlights the critical need for these services in ensuring continued support and access for children.

Question

I am concerned about the financial stability of early years providers during the covid-19 outbreak. What steps are being taken to ensure that these essential services remain financially viable?

Answer from Vicky Ford

We have given unprecedented support through block-buying childcare places and various schemes such as furlough. We monitor the situation closely and issued advice for census week allowing counting of temporarily absent children if nurseries remain open.

Partly answered

Not addressed: Specific measures to stabilise finances beyond current support not addressed

How: Under Review

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Q2 Stephen Morgan Lab Portsmouth South
Children & Families
Context

The MP is worried that early years providers in deprived areas are at risk of closure due to the financial strain caused by the coronavirus, which would disproportionately affect disadvantaged children's access to education.

Question

Nurseries and childcare providers in deprived areas are most likely to close as a result of the pandemic. What action will be taken to ensure we do not lose essential childcare places in less well-off communities?

Answer from Vicky Ford

We have given unprecedented support and are keeping the situation under constant review. Last week's advice ensures that providers can count temporarily absent children for this week's census, provided they remain open.

Partly answered

Not addressed: Specific actions to prevent closures in deprived areas not detailed

How: Under Review

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Q3 Kate Osborne Lab Jarrow and Gateshead East
Education
Context

The MP notes the staffing shortages in early years settings due to isolation protocols, making it difficult to maintain operations. She seeks funding support to cover temporary staff needs.

Question

With many staff isolating due to the pandemic, what additional funding will be provided for employing surplus staff to mitigate staffing shortages?

Answer from Vicky Ford

We are rolling out asymptomatic testing and prioritising local authority support for community testing. If providers temporarily close due to staffing shortages, they can still count children for this week's census.

Partly answered

Not addressed: Specific funding for additional staff not mentioned

How: Under Review

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Q4 Karl Turner Ind Kingston upon Hull East
Economy Children & Families
Context

The MP emphasizes the severe financial strain on children's nurseries in disadvantaged regions like east Hull, which have been underfunded for years and are now further impacted by exclusion from pandemic support. He stresses that closures would be catastrophic.

Question

Many nurseries face severe financial difficulty due to long-term underfunding and lack of support during the pandemic. Can we guarantee essential childcare places in less well-off areas like east Hull will not close as a result of covid-19?

Answer from Vicky Ford

We have announced additional funding for early years entitlements, increasing hourly rates based on local disadvantage. This should cover national living wage increases.

Partly answered

Not addressed: Guarantee against closures in disadvantaged areas not provided

How: Under Review

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Q5 Tulip Siddiq Lab Hampstead and Highgate
Children & Families
Context

The MP criticises current policies that force nurseries to remain open despite public health guidelines, risking closure due to lower demand. She warns that 19,000 providers could close by summer.

Question

Ministers are asking everyone to stay home, yet early years providers are being told to remain open or face financial penalties for reduced attendance during lockdowns. Is this acceptable given the risk of closures?

Answer from Vicky Ford

We are providing clear advice for settings, ensuring they can count children who remain at home out of concern for covid if the setting remains open. Closure allows furloughing staff through government schemes.

Partly answered

Not addressed: Acceptability of potential closures due to funding changes not addressed

How: Under Review

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