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Early years providers unable to meet demand for new places under extended entitlement offer, Alliance survey reveals

The majority of early years providers in England expect to struggle to meet the demand of the upcoming extended entitlement offers, research by the Early Years Alliance has found.

According to a survey of 1,196 early years providers in England, carried out in January and February, 68% of nursery and pre-school respondents reported that they

are already at full capacity, while just 3% said they have a large number of spaces available.

Of the respondents planning to offer funded two-year-old places, 86% predict an increase in demand – however, of these, 71% are not planning to increase the number of two-year-old places they offer.

Similarly, of those settings planning to offer places for under-twos when the scheme expands from September 2024, 84% are expecting an increase in demand, with around half (53%) expecting a significant increase. However, of these, three-quarters (76%) are not planning to increase places.

19% of all respondents say it is likely or very likely that their setting will opt out of at least some of early entitlement offers entirely by September 2025

The research also highlighted the financial challenges facing providers, with 86% of nurseries and pre-schools warning that the upcoming increase in the national living wage will have a negative impact on their finances. Of those, 81% plan to increase fees to mitigate the impact of these cost pressures, while 52% intend to introduce or increase optional charges.

Overall, 24% believe that it is likely or very like that their setting close over the next 12 months.

The findings come as a new survey from Pregnant Then Screwed reveals that a third of parents eligible for new early years funding are considering leaving their job or working reduced hours due to rising costs. Commenting Neil Leitch, CEO of the Early Years Alliance, said: “These survey findings should send alarm bells ringing throughout government. With just weeks to go until the rollout of the extended offer, it is clear that despite the government’s continued promises, not all eligible families will be able to access the early years places they need.

“Years of sustained underfunding combined with a worsening staffing crisis and limitations on space means that many providers simply won’t be able to increase places to meet the surge in demand for the new offers, while others will have no choice but to limit the number of places they deliver under the expansion or opt out of the entitlements completely.

“And, of course, with so many settings still struggling with the impact of inadequate funding rates in the face of sharp cost rises, even those parents who are able to secure a funded space are still likely to face sharp increases in fees and charges for anything outside of their entitlement hours.

“We have long warned that no expansion of the early entitlement offers would be workable in practice unless pre-existing challenges were properly addressed. And while we recognise that ministers have taken some steps to try and address the sector’s concerns – including the recent recruitment campaign – there is still so much more to do to address the wider systemic issues with the current system.

“If the extended entitlement policy is going to have any chance of success, the government needs to urgently address the financial and capacity challenges facing providers. This means increased investment and the development of a clear strategy for supporting not just recruitment, but also the retention of the existing early years workforce. Simply put, this is the only way to ensure that providers will be in a position to deliver the affordable, accessible, sustainable quality early education places that families need.

“So, as we approach the 2024 Budget, it is absolutely vital that the government acknowledges and recognises the scale of the crisis we are in and takes definitive action to turn things around. Continuing to deny there is a problem is simply not an option.”

Employers must make 'reasonable adjustments' for menopausal women

Employers must make ‘reasonable adjustments’ for women experiencing menopause in the workplace, the Equality and Human Rights Commission (EHRC) has confirmed in new guidance.

According to a survey by the EHRC, which is responsible for the promotion and enforcement of equality and nondiscrimination laws, one in ten women who have worked during the menopause have left their jobs due to symptoms, while two-thirds of working women between the ages of 40 and 60 with experience of menopausal symptoms said they have had a mostly negative impact on them at work.

Under the new guidance, if menopause symptoms have a long-term and substantial impact on a woman’s ability to carry out normal day-to-day activities, they may be considered a disability. Under the Equality Act 2010, an employer will be under a legal obligation to make reasonable adjustments and to not discriminate against the employee.

The guidance also confirms that employees experiencing menopause symptoms may be protected from less favourable treatment related to their menopause symptoms on the grounds of age and sex.

Employers are encouraged to carefully consider the guidance now available from the EHRC website and adapt their policies and practices accordingly, to ensure fairness and inclusivity in the workplace.

Baroness Kishwer Falkner, Chairwoman of the Equality and Human Rights Commission, said: “As Britain’s equality watchdog, we are concerned both by how many women report being forced out of a role due to their menopause-related symptoms and how many don’t feel safe enough to request the workplace adjustments.

“An employer understanding their legal duties is the foundation of equality in the workplace. But it is clear that many may not fully understand their responsibility to protect their staff going through the menopause. Our new guidance sets out these legal obligations for employers and provides advice on how they can best support their staff.

“We hope that this guidance helps ensure every woman going through the menopause is treated fairly and can work in a supportive and safe environment.”

Alliance members can download our free ‘Menopause’ mini-guide, available in the Members’ Area of the My EYA Portal.

Mandatory reporting duty introduced for child sexual abuse, Home Office confirms

Anyone working in a regulated activity relating to children in England – including early education and teaching professionals – will now have a legal duty to report crimes of child sexual abuse, the Home Office has announced.

Under plans being brought forward by Home Secretary

James Cleverly, anyone failing to report crimes of child sexual abuse will be barred from working with children again, while anyone who actively protects child sexual abusers – intentionally covering up or blocking someone from reporting the crime – face a seven-year prison sentence.

The full details of the duty are expected to be published in the coming weeks, along with the joint call for evidence and consultation response. The new duty will be incorporated as an amendment at the report stage of the Criminal Justice Bill. A spokesperson for the government stressed to the Alliance that the criminal penalty will only apply where someone deliberately tries to cover up child sexual abuse by preventing reports being made.

Commenting, Home Secretary James Cleverly said: “There is no excuse for turning a blind eye to a child’s pain.

“Having listened to the voices of victims and survivors, and reviewed the work of the Independent Inquiry into Child Sexual Abuse, we are working at pace to get a mandatory reporting duty for child sexual abuse onto the statute book.

“We’re also going further, equipping the police with more powers to prevent those who have committed abhorrent sexual crimes in the past from evading the police by changing their name.

“We will continue use all levers at our disposal to tackle this horrific crime and keep women and children safe.”

Deadline for confirming provider funding rates to be brought forward, government announces

The Department for Education has announced plans to place new limits on how long local authorities have to confirm early years funding rates ahead of them coming into effect.

At the moment, councils are required to notify providers of final budgets for the upcoming financial year by 31 March. However, with a number of providers currently warning that they

Local authorities should confirm local funding rates coming into force no later than the end of February

cannot confirm whether they will opt into the extended entitlement offer because they have yet to receive their final funding rates, the government has announced that, going forward, local authorities will be required to confirm final providers rates within a set window – likely to be eight weeks – after the DfE has confirmed council rates.

The government also says that it has “made clear” to all local authorities that they should confirm local funding rates that come into force from 1 April no later than the end of February.

Early years costs have rapidly outstripped inflation since 2010, Labour analysis reveals

Labour has unveiled data analysis showing that early education and childcare costs have increased beyond the rate of inflation by over a third since 2010.

£70

amount of money per week that the average cost of a full-time nursery place increased by since 2017

According to the analysis, the average cost of a part-time nursery place in 2024 is £146-a-week, compared to £82-a-week in 2010 – an 80% cost increase. This equates to costs exceeding £5,500-a-year for part-time early years place during term-time, rising by £2,400 since 2010.

The data produced by Labour also shows that:

the cost of a full-time nursery place has increased by over £70 per week since 2017.

in 2023, the monthly cost of a full-time nursery place was £283.95 per week - or around £9,000 a year - for term-time places.

the UK is the third most expensive country for early education in the world for average-earning couples.

The analysis comes alongside repeated warnings from early years experts that the sector lacks the resources to deliver plans for the expansion of funded hours, with an estimated 100,000 additional staff required to meet the full 30-hours pledge.

Labour has commissioned an Early Years Review that aims to set out ways to improve and ensure early education provision is readily available across of the country, with the review being chaired by the former chief inspector of Ofsted, Sir David Bell.

Commenting, Bridget Phillipson MP, Labour’s Shadow Education Secretary, said: “Families are forking out thousands of pounds for childcare, all the while being sold a shoddy plan by a Conservative Government that hasn’t the first clue of how to deliver it.

“Families deserve so much better, which is why Labour has commissioned a full, expert-led early years review to examine how we expand access to the flexible childcare that meets families’ needs without breaking their finances.

“The choice couldn’t be starker. A clapped-out Tory Government that has failed families for 14 years, or a Labour Party that is ready to reform childcare so it’s accessible for families right across the country.”

DfE clarifies guidance around additional early years charges for parents

The Department for Education (DfE) has confirmed that early years providers cannot place compulsory additional charges on families accessing the early entitlement offers, after a change to departmental guidance on charging prompted confusion among providers.

The current version of Early education and childcare: Statutory guidance for local authorities states that, though parents can “be expected to pay” for additional goods and services such as meals and snacks, trips, and nappies, these charges “must be voluntary”. In an updated version of this guidance, which will come into effect on 1 April 2024, the reference to the need for these charges to be voluntary has now been removed, leading to uncertainty over whether the rules on charging had changed.

However, responding to a query on this change from the Early Years Alliance, the DfE said: “The policy has not changed. As set out in A1.36 of the guidance, local authorities should work with providers and parents to ensure that all parents, including disadvantaged families, have fair access to a free place, which must be delivered completely free of charge.

“The free childcare entitlements are not intended to cover the costs of meals, other consumables (such as nappies or sun cream), additional hours or additional activities (such as trips). Providers may charge a fee for these additions.

“However, we removed the line regarding charges being voluntary in order to provide clarity to readers. This was partially based on feedback we received during our testing period with a small number of local authorities, providers and relevant bodies. If a parent is unable to pay for consumables or if a parent wishes to provide their own, then the parent and provider can discuss alternative options. This could include allowing parents to supply their own meals or nappies, or waiving or reducing the cost of meals and snacks. As set out in clause A1.33 of the guidance, such charges should not be made a condition of accessing a free place.”

Almost half of parents either in debt or using savings for early years costs, new figures show

45.9% of parents have either been plunged into debt or had to withdraw funds from savings to keep up with early education and childcare costs, a survey from campaign group Pregnant Then Screwed has revealed.

Conducted in partnership with Women In Data, the research surveyed 35,800 parents in total, drawing on a nationally representative sample of 5,870 parents to produce the report.

According to the data, the number of parents going into debt or withdrawing savings to pay for early years places has increased by 30% increase since last year.

The research also found that:

nearly 34% of mothers are unable to work full-time due to early years costs and availability, compared to around 12% of fathers.

20% of mothers in England are unable to take a more senior role due to early years costs and availability, compared to 8.8% of fathers.

52% of mothers who have had an abortion either somewhat agreed or absolutely agreed with the statement: ‘I believe that the cost of childcare was the primary reason for me to terminate a pregnancy’.

66.5% of single parents with children under five have accrued debt due to early years costs.

The research also highlighted the difficulties families experience in being able to access places in local early years settings, with 34% citing waiting lists that extend over nine months, and just 13% of families saying there are no issues in their area.

Joeli Brearley, CEO and Founder of Pregnant Then Screwed, said: “We’re running out of babies. The birth rate is in decline. But parents who want to have more children cannot afford to do so. Being a parent is tough enough, but when having more children means sacrificing your income, procreation feels like financial suicide. If we aren’t careful, becoming a parent will be a luxury item, and the economy can’t afford to pay that price.

“The government has promised parents that they will soon be able to access more affordable childcare, but this will only be successful if the scheme doesn’t bankrupt childcare providers. We’ve already seen that the roll out of the new funding has not been straightforward with many parents still waiting to hear if they will be able to secure a funded place, whilst many others are complaining that cost savings are minimal due to significant price increases for childcare costs outside of the funded hours. It is clear that, after years of disappointment, parents are struggling to believe the promise that things will get better.’’

NEWS IN BRIEF

WORDS FOR SUCCESS

Early Words Matter has launched a campaign to support the UK’s most vulnerable children in developing essential literacy skills crucial for their future success

FUTURE MADE OF VIRTUAL REALITY

Oxford University Press has launched an augmented and virtual reality EYFS app for preschool children

CANAL CAUTION CAMPAIGN

A new water safety campaign has launched that aims to help children stay safe by canals

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