Today (15 March 2023) Jeremy Hunt unveiled the contents of his first budget. Read on for our view on the good and the small print for childcare.
30 hours funding for 9m to 5 years
30 hours funding for 9m to 5 years
The good:
- 30 hours of free childcare for every child over the age of 9 months by September 2025
- 30% increase in funding paid to nurseries to cover the existing scheme
The small print:
Introduced in phases
- 15 hours of free childcare for 2-year-olds from April 2024
- 15 hours of free childcare for 9 months – 3 years old in September 2024
- Full roll out in September 2025
However, the funding is valid for only 38 weeks a year so it works out closer to 24 hours a week for 48 weeks of the year.
In our view we must wait to see if the funding increase resolves the woeful underfunding of the childcare sector.
Increasing the number of childminders
The good:
Evidence shows that childminding
- Is better preparation for a school environment
- Is lower cost for families than nurseries
- Is higher pay for childcare works
But the sector has been declining rapidly.
The new incentives open to childminders are great, where:
- £600 if you apply to be a childminder directly (independently)
- £1200 – yes double – if you come through an agency like Koru Kids who offer community, training and ongoing support
The small print:
- It’s only a pilot – from Autumn this year.
Universal Credit
The good bit:
- Increase of about 50% for families on Universal Credit – up to £951 for 1 child & £1630 for 2 children
The small print:
- Only relevant for parents moving into work, or increasing their hours – it’s not yet clear by how many increased hours qualify
Relaxing childcare ratios
Bad bit:
- Ratios relaxed to 1:5 adults to children, from 1:4 in England
The small print:
- Hardly anyone in the childcare sector agrees with this, and its not obligatory so providers won’t do it
- Its a big distraction from the other major issues that this budget does not yet tackle
- It puts more pressure on childcare workers who are already underpaid and leaving the sector
Wraparound care
The good bit:
- All schools to offer wraparound care between 8am and 6pm
The small print:
- Term time only, no mention of holiday provision
- This will be expensive and very hard to deliver for schools.
Still no detail on how this will work.
