POLICY UPDATE

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It’s clear that 2025 is going to be another significant year for the early years sector.

With the final phase of the expansion now just months away, longstanding funding and staffing challenges continue to have a considerable impact on providers and the overall capacity of the sector. The fact that the most recent Ofsted figures show a decrease of more than a thousand providers in the year up to August 2024 is a clear indication not just of the sector’s already limited capacity, but that further support is crucial if the final phase is to be rolled out and parents able to easily access provision long into the future.

September will also see the initial phase of the school-based nursery expansion. Yet, research published by Frontier Economics back in November concluded that the policy is, on its own, unlikely to work due to a mismatch in capacity across the country. This once again demonstrates the need for the Private, Independent and Voluntary sector to be a key part of any drive to increase places.

But these aren’t the only things on the horizon for the sector: 2024 closed with a pledge from the government to raise development standards to record levels by 2028 – an aim in which the early years will play a central role.

Of course, it’s hugely positive that the government has recognised not just that education starts long before a child reaches the school gates, but also the pivotal role that the early years has on a child’s longterm development and life chances.

However, it’s critical that, as details of the government’s strategy are ironed out, it includes a commitment to realistic, consistent and long-term support for the early years sector. This means funding that reflects the true cost of delivering high-quality provision, both now and in the future, and a workforce strategy that attracts new people to join the sector while supporting the existing workforce to remain.

Nevertheless, there’s no denying that, for all the uncertainty present in the sector, there’s also a clear opportunity for meaningful change. Therefore, at the Alliance, we will continue to do whatever we can to ensure the needs of nurseries, preschools and childminders across the country are both listened to and result in meaningful action.

Neil Leitch, CEO, Early Years Alliance

Out and about

Number 10 Roundtable

In December, Neil represented the early years sector at a roundtable with the Prime Minister. The meeting focused on the government’s ‘Plan for Change’, which includes a focus on the early years and giving children the best start in life as part of the government’s mission to break down the barriers to opportunity. Neil welcome the announcement, saying it has the "potential to mark the start of a new approach to the early years" but added: "What we need now are the practical changes – and investment – that will help ensure that the ambitions outlined today can become a reality.”

Behind the scenes

Meetings on the impact of the National Insurance changes and wage increases on the sector

In both the lead-up to and aftermath of the Budget, the Alliance has regularly been engaged in discussions with both ministers and the Department for Education on the impact of the National Insurance Contribution changes and wage increases on the early years sector, in addition to wider sector challenges – including the government’s plan to expand school-based early years provision and the ongoing early entitlement expansion.