Coronavirus: Free childcare funding to continue

Chancellor Rishi Sunak has confirmed the government will continue to pay the funding to councils for providers to offer the free hours entitlements to disadvantaged two-year-olds as well as for three- and four-year-olds.

This will be paid out even in the event of nursery, pre-school and childminder closures as well as if a child is unable to attend due to coronavirus, which is also known as Covid-19.

The Department for Education has reminded councils of their duty to pass on the funding to providers “to minimise short-term disruption”.

• Coronavirus: School praised over safeguarding plans for potential closure

• Coronavirus: Official advice for schools, nurseries, children’s homes and social workers

“Millions of parents rely on childcare and the vital service provided by nurseries, childminders and preschools. Making sure that young children can be cared for safely so that their parents are able to work where required is of the utmost importance now more than ever,” said Education Secretary Gavin Williamson.

“In recognition of this, we will continue to pay for all free early years entitlements places, even in the event that settings are closed on the advice of Public Health England, or children are not able to attend due to coronavirus, and we will not be asking for funding back from local authorities.”

We've written to @RishiSunak about the Treasury's silence on the childcare sector.

While the confirmation that settings will still receive funding during closures is very welcome, we know that many providers rely on parent fees & will need further support at this difficult time.

— Early Years Alliance (@EYAlliance) March 18, 2020

The move came 24-hours before government announced the closure of all schools from 20 March.

Prime Minister Boris Johnson urged early years settings to follow the advice.

“I want to thank all the early years practitioners who day-in and day-out do such an excellent job,” said children and families minister Vicky Ford.

“I know these must be difficult times and I hope these announcements show that we are listening to their concerns and taking urgent action."

The early years funding announcement is part of a raft of economic measures announced in a press conference on Tuesday by the Chancellor to support businesses during the outbreak. This includes offering business rate relief to the retail, hospitality and leisure industries.

Whatever it takes. #COVID19 https://t.co/0ekP6CWcg3 pic.twitter.com/57uwLUwze0

— Rishi Sunak (@RishiSunak) March 17, 2020

However, Early Years Alliance chief executive Neil Leitch has raised concerns that providers have not received the same relief on business rates.

In a letter to the Chancellor he said: “In yesterday's press conference, you announced a range of substantial measures to help ensure businesses can weather the current storm and mitigate, as far as possible, the detrimental impact of the virus.

"It was of immense concern, therefore, that there was zero mention of the childcare sector. I know that businesses in the retail, hospitality and leisure industries will have warmly welcomed your announcement on business rates relief, but for childcare providers, their omission from this measure was inexplicable.”

The letter adds that the continuation of free hours funding is “a very welcome one”.

“But with many providers reliant on parent fees as a vital source of revenue, this alone is not enough to safeguard the sector.”

The Chancellor has also offered loans to businesses seriously affected by the outbreak.

But National Day Nurseries Association chief executive Purnima Tanuku said: “While the loans will offer a safety net, the last thing stretched early years providers want to do is get into any further debt, so this will be a last resort for them. We have been in regular contact with Treasury officials and putting pressure to include nurseries in the business rate relief.”

She added: “While we welcome some of these measures, they don’t go far enough and there has been no financial support announced which will specifically keep our vital nurseries running.”

An Emergency Coronavirus Bill is due to be introduced into parliament tomorrow (Thursday) giving the government extra powers to tackle the pandemic. This includes increasing the number of available health and social care workers by allowing those who have recently retired to return to work. Also, social work students will be allowed to become temporary social workers.

Time limits on mental health support will also be relaxed as will councils’ duties to carry out needs assessments and support plans for young people.

The bill is also proposing powers to require childcare providers and schools to stay open as well as remove or relax some of their statutory duties. This includes teacher ratios, school meal standards and provision for children with special educational needs and disabilities (SEND).

“This will ensure that children, young people and those who work with them remain safe, while minimising disruption to everyday life and progression to further and higher education or employment by ensuring schools have the flexibility and support they need to respond pragmatically to the changing situation,” according to the government’s statement on the bill.

This story was updated on 18 March