Commons Sense

House of Commons · Westminster Hall

Early Years Education Funding

21 July 2021 · 2 other contributors · 4,075 words

Opened by Wera Hobhouse Lib Dem Bath

Responding minister: Gillian Keegan

EducationChildren & Families

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

Read the full transcript on Parliament.uk

At a glance

Wera Hobhouse raised concerns about early years education funding in Westminster Hall. A government minister responded.

Key points

  • The early years sector is experiencing a serious shortfall in funding, with 80% of childcare settings unable to break even at the local authority funding rate.
  • Closures in the sector have increased by 35%, affecting more than 11,000 children's places, disproportionately impacting deprived communities.
  • Parents face some of the highest childcare costs in Europe, and providers struggle to hire qualified staff due to insufficient wages.

Key requests to Government

The Government should prioritise the early years sector for investment in the upcoming comprehensive spending review and commit to a catch-up premium of £2,964 per child per year under the 70 hours entitlement. A meaningful multi-year funding settlement is needed to simplify the funding system, improve uptake of funded places, and support children with special educational needs.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Wera Hobhouse Lib Dem Bath

The early years sector is experiencing a serious shortfall in funding. Providers are struggling to break even, with 80% of childcare settings unable to deliver services at the local authority funding rate. Closures have increased by 35%, affecting more than 11,000 children's places and disproportionately impacting deprived communities. Staff retention rates are low due to insufficient wages, making it difficult for providers to hire qualified staff. Parents face some of the highest childcare costs in Europe.

Other contributors (2)
  • Jim Shannon DUP Strangford

    He echoed the hon. Lady's request for further funding to ensure adequate childcare and education opportunities during a critical time highlighted by the pandemic.

  • Steve Brine Con Winchester South and Milton

    I am concerned about the unintended consequences of the Government's 30 hours entitlement programme for young families. There is a funding gap of £2.60 per child per hour, which amounts to almost £3,000 per year per child. Tens of millions of pounds could fund 30-hour places for 20,000 children with the proposed catch-up premium. Additionally, there has been an increase in nursery closures by 35% between April 2020 and March 2021.

Government Response

Gillian Keegan

It is a pleasure to serve under your chairmanship, Ms Fovargue. I congratulate the hon. Member for Bath on securing this debate and discuss the importance of early years education in developing cognitive, social, and emotional skills in children. Nurseries, childminders, teachers, and parents have supported and educated our youngest children throughout the pandemic. The Government invests heavily in high-quality childcare through the universal 15 hours of free childcare for all three and four-year-olds, plus an additional 15 hours for working parents. In 2019, 71.8% of children achieved a good level of development at the end of the early years foundation stage profile compared to 51.7% in 2013—a remarkable achievement. The Government has spent over £3.5 billion annually on early education entitlements and increased hourly rates paid to childcare providers through an extra £44 million announced last year, ensuring no council receives less than £4.44 per hour for the three and four-year-old entitlements. Funding aligns with attendance data provided by local authorities, providing reassurance to providers. The Government has also provided significant support during the pandemic through business support packages, including access to the coronavirus job retention scheme, business rates discounts, recovery loans, and extensions of self-employment income support schemes. Additionally, there is investment in T-levels to provide a skills pipeline for the early years sector and funding for training staff to support children's learning and development, with £27 million allocated to support early language development through the Nuffield Early Language Intervention programme. The number of places available for parents seeking childcare has remained broadly stable since August 2015, despite challenges posed by the pandemic.

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