OPINION

The Budget: The early years sector reacts

Caroline Wadham, press and external affairs officer at the Alliance, looks at reactions to the Spring Budget from across the sector

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Caroline is part of the communications and external affairs team at the Alliance, leading on the organisation’s press and media coverage, as well as supporting campaigns and policy work.

In March’s Budget, Chancellor Jeremy Hunt, declared he wanted to “reform our childcare system,” announcing plans to expand the 30-hour offer to children of working parents from nine-months in England to encourage more parents back into the workplace.

The government also announced plans to increase funding for existing early entitlement offers. It will spend an extra £204 million on entitlements for three- and four-year-olds and an additional £288 million in 2024/2025. This funding is in addition to the £4.1 billion that the government will provide by 2027-28 to facilitate the expansion of the new funded hours for younger children.

But, what will this mean for the sector? We asked educators across the country for their thoughts:

“I am not convinced that the government’s £600 incentive payment for new childminders will make a blind bit of difference when it comes to increasing childcare places. We know that £600 is peanuts and won’t go far, especially when it comes to setting up a new business.

“So many childminders have left our profession in recent years. I get so many enquiries for places and I have to tell parents that I don’t have any spaces. Even now, it is not easy for parents to find a childminder and the expansion of the early entitlement offer is only going to make this worse.

“Our sector needs proper funding – the cost of the ‘free childcare’ must be fully met by the government. Childminders must be recognised and treated with respect by the government. I honestly think that the government has no idea about what childminders actually do and the vital impact we have on children and their development.”

Abi Mills, childminder, Lancaster

“The Budget has left me completely dismayed. As it stands, the expansion of the 30-hour-offer will mean a reduction in income for our pre-school, at a time when we are already financially struggling. Currently, the only way our setting can remain financially viable is if we charge parents for hours that fall outside of the existing 30-hour offer and run an after-school club. Earlier this year I calculated that if we had to fund ourselves solely with government funding, we would lose around £16,000 a year, and in recent months this figure has increased. The funding the sector receives is completely unsustainable.”

Eileen Griffiths, volunteer director and treasurer at The Orchard Community Pre-School, Surrey

“Unless the funding is calculated on actual costs – not a figure that is picked out of the air – working parents will not be able to send their children to private nurseries because they will have all closed.

“We are a nursery that is 99.9% funded. The only reason we have remained open is because, as the owner, I work more than 50 hours a-week and have taken on so many additional roles it is quite ridiculous. I think this attempt to gain support from working parents, who clearly want the best for their families by going to work is sly and misleading to say the least.

“Let’s be honest and talk about true figures, not the overall figure but what this actually means per-hour, per- child. That will show how great this offer really is.”

Lorraine Weaver-Ennis, early years teacher, nursery manager and owner at Hinckley Road Nursery, Coventry


“The early years sector is on its knees. Years of chronic underfunding, low wages and the cost-of- living crisis have had a massive impact. Frustratingly, the Budget will not change this.

“PVI settings in Barnet are struggling with business rates, rising energy costs and high rent. We don’t feel supported by the government and receive less money compared to maintained settings.

“Additionally, qualified staff deserve a pay rise to acknowledge their expertise, especially given that the minimum wage has risen to £10.42 per hour; however, paying qualified educators what they deserve is unaffordable.”

Kelly Fridd, deputy manager at Play and Learn Day Nursery, Barnet


“I have worked in the sector for 32 years and I love my job with a passion, but the Budget has left me feeling completely lost and undervalued. The Budget started by stating how high the cost of childcare is. It is only high because we have no option but to charge parents fees due to the lack of funding we receive from the government. In addition, the government completely failed to mention what a fabulous job the early years sector does.

“My staff are all qualified to at least a Level 3, yet due to the ridiculously low levels of funding we receive I am unable to pay them more than the minimum wage – the funding announced in the Budget is unlikely change this.”

Heidi Berry, manager and owner, Newent Early Years, Gloucestershire