Ministers knew early years was underfunded

The funding rates paid to local authorities for the so-called ‘free childcare’ offer are just two-thirds of what the government itself estimated would be required to fully fund the scheme.
This is based on the Early Years Alliance, that has analysed Department for Education data and located that civil servants estimated that the cost of a government-funded early years place for three- and four-year-olds would cost an average of £7.49 each hour by 2021/21.
By contrast, the typical rate paid to local authorities is currently just £4.89. That’s a shortfall of £2.60 per child, each hour for every 30-hours place – or £2,964 a over the course of a year.
The documents obtained also demonstrate that ministers were aware that the inadequate levels of investment proposed would result in higher prices for parents of younger children which many providers would be forced to use maximum statutory adult-to-child ratios to be able to remain viable.
Neil Leitch, chief executive from the Alliance, commented: “For a long time, the first years sector has warned the so-called ‘free entitlement’ offers are not free, when confronted with repeated government claims that the policy is adequately funded. These documents, that they spent a lot more than two years trying to hide, prove otherwise.
“The early many years of a child’s life are critical to their long-term learning and development – but ministers happen to be very pleased to force providers to operate to maximum ratios, inevitably reducing quality, in order to save the Treasury some money.
“For so long, the government has tried to deflect the culprit for rising childcare costs. But these documents prove, in black and white, that it knew that the introduction from the 30-hours policy, along with an insufficient degree of investment, would result in higher costs for moms and dads of younger kids.
“Early years providers and parents have had an adequate amount of being forced to pay the price with this underfunded policy year after year. There is still here we are at the federal government to do what's right, but at this point, the only way for this to maintain any credibility with parents and early educators is as simple as receiving a full overview of early years policy in this country. Which means delivering the substantial investment the sector needs within the upcoming Spending Review. Only with fair and adequate funding can we ensure nurseries, pre-schools and childminders can continue delivering the quality, affordable care and education that children and families both need and deserve.”