Early years funding levels not sustainable, MPs warn

The online survey of more than 1,300 parents in England, carried out by the all-party parliamentary group (APPG) on childcare and early education, found that, at the end of January, just 11 per cent of parents surveyed believed the financial settlement currently on offer to the early years sector is enough. 

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More than a third (36 per cent) of parents felt the government was providing sufficient financial support for parents and carers with children under five.

It also highlights fears over more families falling into poverty due to one parent being unable to return to work due to a lack of childcare.

Nearly half (47 per cent) of respondents feared it would lead to a potential loss of income.

The APPG’s survey also found that 97 per cent of parents agreed that providers had a significant impact on the learning, social and emotional development of their child.

The APPG said it hopes these results will help guide the government towards “providing vital additional support to the early years sector as the country emerges from lockdown and to carry out a full review of early years funding to ensure a sustainable funding model for the sector, to ensure the survival of early years settings that provide vital support to families across the country”.

APPG’s chair, Steve Brine MP, said: “The APPG on childcare and early education is calling on the government to hold a comprehensive review of early years policy to identify reforms, including to funding streams. The sector is crying out for help to continue doing its vital job in both supporting children and helping their parents return to work and help rebuild our economy.”

Responding to the research Purnima Tanuku, chief executive of National Day Nurseries Association, said: “It’s clear from these responses that parents really value high-quality care for their children but are worried that the government does not value it enough to pay for providers rates that even cover their running costs.

“If the government is serious about levelling up and supporting the country’s economic recovery, they need to make sure they are properly funding early education and childcare so nurseries can continue their vital work and be there for parents when they need them.”

The APPG will be holding a virtual meeting to publicly unveil the findings of the survey at 3pm today (27 April).