Parents set to struggle to access 'free childcare' places through the new government offer as providers warn of limited capacity, new �黨Ӱ��survey finds

Parents set to struggle to access ‘free childcare’ places through the new government offer as providers warn of limited capacity, new �黨Ӱ��survey finds

Nurseries, pre-schools and childminders in England will be unable to provide enough early years places to match the increased demand caused by the upcoming expansion of the early entitlement offer, research from leading membership organisation the Early Years �黨Ӱ��has revealed.

In the March Budget, the government announced plans to extend the 30-hours so-called ‘free childcare’ offer to children aged between nine months and two years old in 2024 and 2025.

However, the results of two parallel surveys aimed at parents/carers and early years providers, carried out online by the �黨Ӱ��between 10 and 21 July 2023, highlight a significant disconnect between parent/carer expectations of the new offers and provider capacity to deliver places in line with demand.

Overall, around nine in ten (89%) eligible families said they are expecting to use the expanded offer, while 61% said they optimistic that they will be able to access all the hours and sessions they want, on the days they need.

However, many providers warned that, despite anticipating surges in demand, they will not have the capacity to increase places to meet parent and carer expectations.

Of those providers who are planning to offer places as part of the new two-year-old offer, more than eight in ten (83%) providers said they expect this to result in an increase in demand for places. However, of these, three in five (60%) are not planning to increase the number of places offered to meet demand.

Similarly, while 77% of providers planning to offer one-year-old places said they anticipate a rise in demand, 72% of these have said they are not planning to increase the number of places to match.

Across both offers, providers highlighted a lack of space or sufficient staff as key reasons for them being unable to offer an increased number of ‘funded’ places. More than four in ten (42%) of all providers surveyed said their setting is already full with a waiting list.

The �黨Ӱ��survey also found that a significant proportion of providers may choose to continue delivering places for one- and two-year-olds, but charge for them privately rather than delivering them via the government’s ‘free childcare’ scheme.

Of the 96% of respondents who currently offer places to non-funded two-year-olds, a third (33%) said they are unsure as to whether they will deliver them via the government’s early entitlement scheme once extended, while one in five (20%) plan to offer a limited number of places under the expanded entitlement offer and charge privately for the rest.

In addition, of the 54% of providers who currently offer places to non-funded one-year-olds, two in five (40%) are undecided as to whether they will deliver the new funded offer to eligible two-year-olds from working families, while one in five (20%) plan to offer a limited number of places via the government’s early entitlement scheme and charge privately for the rest.

What’s more, despite the phased roll-out of the offer, most settings do not feel that the sector has been given enough time to prepare for the expansion, with 59% of respondents disagreeing with the statement: “The government’s phased introduction of the early entitlement expansion gives enough time for early years settings to prepare for increased demand for places’.

Commenting, Neil Leitch, CEO of the Early Years Alliance, said:

“As our survey clearly demonstrates, once again, the government has blindly made a promise to families that many providers simply will not be able to deliver on.

“A combination of poor funding, a lack of capacity and insufficient time to prepare means that many pre-schools, nurseries and childminders may – quite understandably – choose to limit the number of funded places available under the expanded offer, or in some cases, opt out entirely. As a result, many of the parents and carers who are pinning their hopes on benefitting from the new offers when they roll out next year are likely to be left sorely disappointed.

“If the government had actually engaged with the sector before ploughing ahead these plans, it would have known that there was no way that we would be able to provide the places that have been promised to families on anywhere near the scale proposed in the time given. Instead, it once again chose to announce first and ask questions later, leaving us with a policy that, given the state of the sector at the moment, is simply unworkable.

“With settings closing at record levels and educators leaving in their droves, the early years is at crisis point. As such, before we can even consider expanding the early entitlement offers, we need to fix the huge problems that years of underfunding has created. We therefore urge the government to work with the sector to ensure that the necessary infrastructure is in place to support providers to deliver the places that families need. Otherwise this policy risks becoming a complete and utter waste of time and money.”

Survey comments

Early years providers

“There is a staffing crisis in the sector so there is no way that we will be able to increase spaces. It is doubtful we can honour the spaces we have already offered.”

“We are in a community centre and it would cost too much to make alterations to the building in order to accommodate [the extended funded offer]. Also, even now we cannot recruit to meet our current needs.”

“We don't have the capacity or resources either from a setting or staffing point to provide care for the under twos – as we can't provide a separate area for sleeping and we have difficulty recruiting staff and under twos need more staffing.”

“Unless the government looks into the cost of providing funded places, raises the level of respect for early years professionals, especially childminders, and provides enough money to provide a place for every child that wants one, there won't be enough providers, therefore places, to make the scheme work.

“If the government wants to follow through with its promises to parents, it needs to put its hand in its pocket and fund it properly. Telling parents they can have all this to win votes and then not having any providers because their businesses have all gone under is not going to work.”

Parent/carers

“I am so excited for the new free hours to begin and my children to be old enough to qualify, but the scheme is massively flawed. It will never work if the government does not help nurseries financially in the meantime. You can't offer all children aged nine months onwards funded hours without increasing the availability of childcare places. Nurseries are closing left right and centre. If this continues, the new scheme will become pointless”.

“My childminder said they will not be able to offer this as they are not paid enough so there is a shortfall and they are not even able to charge the difference.”

“Our nursery has struggled with staffing in the last year. If there’s an influx of children because of the free hours I can’t see how they’ll be able to staff it, so I’m not sure if they’ll offer the free hours at all.”

“The nurseries around here are over-subscribed and under-resourced so extra hours are difficult to access.”

“There is a shortage of nursery spaces already so I feel this will get worse. There is also shortage of nursery staff, so I am not sure where you can to recruit and train staff by next year?”

EDITOR NOTES

FULL SURVEY FINDINGS

Both surveys were carried out online from 10 July to 21 July

Provider Survey

The provider survey received 803 responses

How would you best describe where you work in the early years?

Nursery, 29%

Pre-school, 41%

Childminding professional, 26%

Maintained nursery school, 0%

Primary school nursery class, 0%

Out of hours club, 0%

Children’s centre, 0%

Specialist provision, 0%

Other, (please specify) 3%

How would you best describe your role within your setting? Please choose the description that matches your current role most closely – if none are similar to your role, please choose ‘other’ and specify your role

Owner only, 10%

Both owner and manager, 29%

Manager only, 32%

Deputy manager, 3%

Early years teacher/professional/Level 6 educator, 5%

Room leader 0%

Level 4 or 5 educator, 1%

Level 3 educator, 6%

Level 2 educator, 0%

Level 2 assistant, 0%

Unqualified educator, 1%

Apprentice, 0%

Other (please specify), 13%

Funding for the coming year (2023/24)

Does your setting currently offer early entitlement places to disadvantaged two-year-olds?

Yes, 90%

No, 11%

[The following two questions were asked to those who answered yes to the previous question]

How does your current two-year-old funding rate compare to the cost of delivering places?

Our funding rate is more than the cost of delivering places, 11%

Our funding rate is the same as the cost of delivering places, 13%

Our funding rate is less than the cost of delivering places, 76%

The government has now confirmed how much two-year-old funding rates for each local authority will increase in September 2023. You can find this information here. If your setting received the same percentage increase in funding as your local authority in September 2023, how would your two-year-old funding rate compare to the cost of delivering places?

Our funding rate would be more than the cost of delivering places, 23%

Our funding rate would be the same as the cost of delivering places, 29%

Our funding rate would be less than the cost of delivering places, 48%

Does your setting currently offer early entitlement places to three-and four-year-olds?

Yes, 94%

No, 6%

[The following two questions were asked to those who's setting currently offer early entitlement places to three-and four-year-olds?]

How does your current three- and four -year-old funding rate compare to the cost of delivering places?

Our funding rate is more than the cost of delivering places, 2%

Our funding rate is the same as the cost of delivering places, 5%

Our funding rate is less than the cost of delivering places, 94%

The government has confirmed how much three-and four -year-old funding rates for each local authority will increase in September 2023 - you can find this information here. If, in September 2023, your setting receives the same increase in funding as your local authority in September 2023, how would your three and four-year-old funding rate compare to the cost of delivering places?

Our funding rate would be more than the cost of delivering places, 3%

Our funding rate would be the same as the cost of delivering places, 10%

Our funding rate would be less than the cost of delivering places, 86%

[Respondents were asked this question if they answered 3 and 4 year old rate would be less than delivery costs] What steps are you likely to take to cover this shortfall? Please select all that apply and briefly explain your answer.

Increasing fees, 70%

Introducing or increasing optional charges (e.g. for trips, meals and snacks), 59%

Fundraising, 31%

Extending opening hours, 6%

Reducing opening hours, 7%

Reducing staff numbers, 21%

Temporarily closing rooms, 4%

Permanently closing rooms, 2%

Limiting the intake of children, 28%

Move to term-time only (if currently all-year-round), 3%

Temporarily closing the entire setting, 1%

Permanently closing the entire setting, 8%

Freezing or limiting staff pay (if applicable), 21%

Reducing staff training (if applicable), 27%

Reducing spending on equipment and resources, 60%

Other (please specify below), 7%

Expansion of early entitlement hours

In the most recent Budget, the Chancellor confirmed an expansion of the early entitlement offer. The scheme will be expanded in stages, with:

15 hours a week offered to all eligible two-year-olds from April 2023

15 hours a week offered to all eligible children from nine months old

30 hours a week for all eligible children from nine months old from September 2025.

The above all apply for 38 weeks of the year and to eligible working families only.

Taking the above into account, to what extent do you agree with the following statement, “The government’s phased introduction of the early entitlement expansion gives enough time for early years settings to prepare for increased demand for places.”

Strongly agree, 3%

Agree, 13%

Neither agree nor disagree, 25%

Disagree, 27%

Strongly disagree, 32%

How does the overall number of places across all age groups you offer compare to demand at the moment?

We are full, with a waiting list, 42%

We are full, but with no waiting list, 11%

We have a small number of spaces available, 27%

We have a moderate number of spaces available, 13%

We have a large number of spaces available, 7%

Do you currently offer places to non-funded two-year-olds?

Yes, 96%

No, 4%

[The following questions were only asked to those who don’t currently deliver places to non-funded two-year-olds]

Are you planning to offer government-funded places to two-year-olds from eligible working families once the early entitlement offer is extended to this group of children?

Yes, 24%

No, 56%

Not sure, 20%

[If answered no to the previous question] Why have you decided not to?

I / We would like to offer funded places to eligible two-year-olds but are unlikely be able to, 29%

I / We don’t want to offer funded places to eligible two-year-olds, 71%

[The following five questions were only asked to those who do currently deliver places to non-funded two-year-olds]

Are you planning to offer government-funded places to two-year-olds from eligible working families once the early entitlement offer is extended to this group of children, or to continue to charge for these places privately? Please briefly explain your answer.

I / we plan to offer these places via the government’s early entitlement scheme, 43%

I / we will continue to charge for the places privately, 4%

I / we plan to offer a limited number of places via the government’s early entitlement scheme and charge privately for the rest, 20%

Undecided, 33%

[If planning to offer places via the government scheme] Are you expecting the expansion of the early entitlement offer to result in an increase in demand for two-year-old places at your setting?

Yes, a significant increase, 38%

Yes, a moderate increase, 29%

Yes, a small increase, 16%

No, 8%

Not sure, 10%

[If any yes option] Are you planning to increase the number of two-year-old places offered at your setting to meet the expected increase in demand?

Yes, 13%

No, 60%

Not sure, 27%

[If no] Why are you not planning to increase the number of places?

I / We already have enough capacity to meet the expected increase in demand, 12%

I / We would like to offer more places but are unlikely to be able to, 51%

I / We don’t want to offer more places, 13%

Other (please specify), 24%

[If answered ‘We would like to offer more places but are unlikely be able to] Why do you think you will be unable to increase the number of places for two-year-olds at your setting? Please select all that apply and explain your answer

Space limitations, e.g not enough space in certain rooms or the setting overall, 41%

Staffing constraints, 31%

Financial constraints, 18%

Other (please specify), 10%

Do you currently offer places to under-twos?

Yes, 54%

No, 46%

[The following questions were only asked to those who don’t currently deliver places to non-funded under-twos]

Are you planning to offer government-funded places to under-twos from eligible working families once the early entitlement offer is extended to this group of children?

Yes, 3%

No, 87%

Not sure, 10%

[If answered no to the previous question] Why have you decided not to?

I / We would like to offer funded places to under-twos but are unlikely to be able to, 20%

I / We don’t want to offer funded places to under-twos, 80%

[If answered I/we would like to offer to offer places to children aged two and under but unlikely to be able to] Why do you think you will be unable to offer places for under-twos at your setting?

Space limitations, e.g not enough space in certain rooms or the setting overall, 80%

Staffing constraints, 48%

Financial constraints, 38%

Other (please specify below), 20%

[The following five questions were only asked to those who do currently deliver places to non-funded two-year-olds]

Are you planning to offer government-funded places to under-twos from eligible working families once the early entitlement offer is extended to this group of children, or to continue charging for these places privately? Please briefly explain your answer.

I / we plan to offer these places via the government early entitlement scheme, 33%

I / we will charge for the places privately, 7%

I / we plan to offer a limited number of places via the government’s early entitlement scheme and charge privately for the rest, 20%

Undecided, 40%

[If planning to offer places via the government scheme] Are you expecting the expansion of the early entitlement offer to result in an increase in demand for places for under-twos at your setting?

Yes, a significant increase, 39%

Yes, a moderate insurance, 21%

Yes, a small increase, 17%

No, 11%

Not sure, 11%

[If any yes option] Are you planning to increase the number of places for under-twos offered at your setting to meet any increase in demand?

Yes, 11%

No, 72%

Not sure, 17%

[If answered no] Why are you not planning to increase the number of places offered to under-twos?

I / We already have enough places to meet the expected increase in demand, 7%

I / We would like to offer more places but are unlikely to be able to, 52%

I / We don’t want to offer more places, 10%

Other (please specify), 31%

[If answered ‘We would like to offer more places but are unlikely be able to] Why do you think you will be unable to increase the number of places for under-twos at your setting? Please select all that apply and explain your answer

Space limitations, e.g not enough space in certain rooms or the setting overall, 70%

Staffing constraints, 45%

Financial constraints, 19%

Other (please specify), 6%

Ratio changes

Asked to nurseries and pre-schools only

From September 2023, the statutory limit on adult-child ratios for two-year-olds will change from 1:4 to 1:5. How often, if at all, is your setting likely to operate at the new maximum ratio for this age group?

Permanently, 6%

Regularly, 5%

Occasionally, 14%

Rarely, 23%

Never, 23%

Undecided, 6%

I don't know - it's not my decision, 2%

N/A - not a nursery or pre-school, 20%

[If answered Rarely or Never] What are the main reasons for this? Please select all that apply and explain your answer

Space limitations, 12%

Availability of educators, 16%

Impact on quality of education, 81%

Safety concerns, 84%

Concerns about pressure on staff, 84%

Lack of demand for places, 2%

Other (please specify below), 3%

[If answered permanently, regularly or sometimes] What are the main reasons for this? Please select all that apply and briefly explain your answer.

Increase the number of children the setting is able to take on, 27%

Limit the impact of staff/educator absences, 53%

Increase setting income, 29%

Lower prices for families and/or prevent them from increasing further, 9%

Other (please specify below), 18%

Childminder changes

Asked to childminders only

Are you currently registered with a childminding agency?

Yes, 8%

No, 90%

N/A - not a childminder, 2%

Do you think the introduction of incentive payments for childminders (£600 for Ofsted-registered childminders and £1200 for agency-registered childminders will encourage more childminders to join the sector? Please explain your answer.

Yes, 14%

No, 49%

Not sure, 37%

What further action could the government take to encourage more childminders to join the sector? Please select all that apply

Increasing early entitlement funding rates, 82%

Access to training, guidance and CPD opportunities, 43%

Raising the profile of childminding as an education profession, 84%

Allowing childminders to claim early entitlement funding for related children, 75%

Increasing the number of childminder agencies, 2%

Providing higher incentive payments for new childminders joining the sector, 18%

Making the registration process quicker, 37%

Reducing the cost of registration, 28%

Other (please specify below), 12%

Parent/Carer Survey

The parent/carer survey received 547 responses

Do you currently have a child or children aged under five?

Yes, 94%

No, but I am/ my partner is pregnant, 2%

No, but I am / we are in the process of adopting a child under five, 0%

No, and I don’t expect to have a child in the near future, 4%

Do you currently use any formal childcare and early education (e.g. a nursery, pre-school, childminder or nursery school/class?)

Yes, 93%

No, but I would like to access a place, 6%

No, and I don’t currently want to access a place, 1%

What is the main reason you are currently not accessing any formal childcare and early education?

Cannot afford the cost of formal childcare and early education, 52%

Cannot find a place at a suitable early years setting, 21%

Other (please specify), 28%

Are you currently on any waiting lists for any early years settings?

Yes, more than one waiting list, 50%

Yes, one waiting list, 17%

No, 33%

Are you currently able to access all the hours that you want on the days you want?

Yes, 77%

No, 23%

Do you currently receive any early entitlement funding (sometimes referred to as ‘free childcare’ funding) towards your early years costs (even if you don’t take up your full entitlement)?

Yes, 30 hours funding for three- and four-year-olds, 32%

Yes, 15 hours funding for three- and four-year-olds, 15%

Yes, 15 hours funding for two-year-olds, 7%

No, 44%

Unsure, 1%

Does the funding you receive cover all of the fees that your early years provider charges?

Yes, 38%

No, 62%

Approximately how much a month do you pay in additional costs (i.e. the costs of any hours/sessions not covered by funding plus any charges such as food, trips, nappies etc). Please give your answer as a number with no £ sign for example, for £100, type 100.

£364&�Բ��;

How does this compare to what you initially thought you would pay per month when you became eligible for the early entitlement offer?

It is significantly more, 38%

It is somewhat more, 29%

It is about the same, 26%

It is somewhat less, 3%

It is significantly less, 3%

Do you have a child, or are you expecting, a child who will younger than three at the start of April 2024?

Yes, 64%

No, 36%

Do you expect to be eligible for the extended early entitlement offers once they roll out?

Yes, 66%

No, 5%

Not sure of the eligibility criteria, 29%

Are you planning to take up any of the extended early entitlement offers once they roll out, assuming your child is eligible?

Yes, definitely, 89%

Yes, probably, 6%

Yes, possibly, 4%

No, 1%

How optimistic are you that you will be able to access all the hours/sessions you want on the days you need? Please briefly explain your answer.

Very optimistic, 22%

Somewhat optimistic, 39%

Neither optimistic nor pessimistic, 14%

Somewhat pessimistic, 19%

Very pessimistic, 6%

Are you expecting to pay any additional charges or fees to your early years setting once you become eligible for the new offer?

No, 17%

Yes, and I have an approximate idea of how much, 23%

Yes, but I have no idea how much, 60%

Roughly how much per month are you expecting to pay in additional charges and fees? Please give your answer as a number with no £ sign – for example, for £100, type 100.

£375&�Բ��;

To what extent do you agree with the following statement: “The government invests enough money into the early years sector in England”? Please briefly explain your answer.

Strongly agree, 7%

Somewhat agree, 6%

Neither agree nor disagree, 9%

Somewhat disagree, 18%

Strongly disagree, 61%

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Parents set to struggle to access 'free childcare' places through the new government offer as providers warn of limited capacity, new �黨Ӱ��survey finds