Childcare boss calls on government to raise funding rates
Derren Hayes
Thursday, August 25, 2022
An early years leader has warned the government that the sector needs “proper funding” if it is to survive the financial crisis caused by the rising cost of living.
London Early Years Foundation (LEYF) chief executive June O’Sullivan said that the new Prime Minister, when appointed next month, must boost early years funding rates or some settings could be forced to close.
In an online blog, O’Sullivan wrote: “In order to help parents and staff, the sector needs proper funding to ensure it survives the financial crisis.
“It is a simple enough message; fund the childcare sector to provide high quality services to children so parents can work and children, all children, can benefit for the education and care they deserve which will build their confidence and capabilities for the future. Win, win surely?”
Rising fuel and food costs linked to the War in Ukraine and post-pandemic boom has pushed inflation above 10 per cent, with this expected to rise further when energy prices increase in the autumn.
The rises have pushed many disadvantaged families further into poverty and O’Sullivan warns that the “just about managing” parents, including childcare workers, will also be badly hit by the crisis.
“They are sending their children to nurseries so that they can work but sadly are joining the many millions who are the working poor,” she wrote. “Ironically, many of these families include the early years staff who are providing the service.”
O’Sullivan said some providers may increase fees to boost income and “redistribute the money into staff salaries” but warned that this could “exclude many families from accessing affordable high-quality education and care and ultimately children lose out”.
Instead, she urged childcare providers to introduce a range of support measures to help staff and parents including introducing a cost-of-living bonus, subsidised lunches for staff, free hygiene products and access to debt advice.
However, she said this is ultimately “window dressing” compared to the government properly funding services.
“There are no other solutions forthcoming to improve the services to parents to enable them to work and try and keep their heads above water,” she added dismissing the government's plans to change childcare ratios.
Earlier this year, LEYF called for the expansion of free school meals to support parents and has been at the forefront of improving staff benefits.
