CYP Now - Understanding the impact of early years funding shortage

The early years sector has acted as a lifeline for families over the last two years. Yet while it has played such an essential role during the pandemic, it has often been taken for granted.

Government funding rates have failed to keep up with rising wages. Picture: highwaystarz/Adobe Stock

At times, government support for the sector has felt like an afterthought. Ongoing financial challenges and a lack of support has forced thousands of early years providers in England to close their doors for good.

Even before the pandemic, the sector was facing long-standing financial problems: funding to ensure the provision of high-quality early education was insufficient, while the failure to recruit and retain staff was a growing cause for concern. Education Policy Institute (EPI) research for the Social Mobility Commission highlighted early years workers are underpaid, overworked and undervalued.

Funding pledges

In light of these pre- and post-pandemic challenges, it is particularly disappointing that pledges from ministers at the Comprehensive Spending Review for “additional” funding for the sector over the next few years now appears to be anything but. Sector organisations are right to feel let down over this mismatch of words and actions, and it is clear the government should have communicated its long-term funding plans more clearly.

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