MP warns over inadequate childcare funding levels

Darren Jones, Labour MP for Bristol North West, who sponsored the debate at Westminster Hall on Tuesday, said he knew of providers in his constituency who are struggling to "make ends meet".

Presenting a motion for the government to consider the costs and benefits of funded childcare, Jones said the childcare system was not "sustainable" and many childcare providers were on the brink of closure.

He said one childcare provider in his constituency received £3.84 per hour per child in government funding which left a financial shortfall threatening the future of the provision.

"Childcare providers tell me they can't afford to make ends meet without applying additional costs onto families on top of the core cost of childcare," he said.

"We should be aiming for a fully funded childcare system with qualified and decent paid childcare professionals.

"It is an investment in our future and it will break down gender and class inequalities and help foster happier and healthier families right across the country."

• Analysis: Childcare funding in the spotlight
• Analysis: Five ways councils can get more from 30 hours funded childcare

A briefing published by the Local Government Association (LGA) states current funding rates for early years provision are "insufficient" and risk both the "sustainability of many providers and the sustainability of high quality provision".

It said research suggests the deficit between the cost of delivery and funding paid via local authorities has grown to an average of £2,166 per year per child.

Shadow early years minister Tracy Brabin, MP for Batley and Spen, said cost was the greatest barrier for families to access childcare.

She called on the government to announce details of funding for maintained nursery schools as soon as possible, describing them as "standard bearers for the sector".

The LGA is also calling for the government to extend its supplementary funding for maintained nursery schools scheduled to end in 2019/20.

"Maintained nursery schools offer an exceptionally high standard of education and support disproportionately high numbers of disadvantaged children and those with SEND.

"We are calling on the government to extend the supplementary funding into 2020/21. This will provide certainty to providers while a sustainable solution is found as part of the Spending Review," it said.

Nick Gibb, minister of state for school standards, told MPs the introduction of 30 hours childcare funding had been "a large scale transformational programme" and that "such change can be challenging but tens of thousands of providers have responded to make it a success".

He said an evaluation of the introduction of the 30 hours funding found that the supply of childcare in England was "generally of high quality" and while there were examples of providers closing figures from Ofsted released in December showed that numbers of providers were "stable".