Since the Government announced the expansion of the funded offer for early childhood places in the spring (March) 2023 Budget, there has been widespread coverage of the implications of this for the sector, especially when addressing challenges around the supply of places, staffing and potential demand.
It is welcome that we have a clear strategy from a Government that is committed to investment in early years, though execution of said strategy is equally as important. There is a danger that if key components of this strategy are left until the last minute, there will be limited time for the sector to make the appropriate investments, much like the handling of the RAAC issue has left schools inadequate time to prepare. In the early years sector, delayed investment could lead to closures further down the line.
Our twice-yearly survey of operators is currently under way, and from the results so far, we are seeing a real squeeze on operator financial positions. Without effective engagement from the Government on what execution looks like, this could lead to a slowdown in the sector, with investment decisions being put on hold or cancelled altogether.
To address this before it is too late, it is important that the Government continues to be proactive in engaging with the sector. The formation of the Early Education and Childcare Coalition is just one such example that there is growing frustration with how this has been enacted recently. Making no more changes to the children’s minister would also help. Meaningful engagement and execution of well-meaning strategy cannot be effective when there have been eight post-holders in the last five years (bonus point if you can name them all!).
A clear strategy from the Government and a sector willing to invest is a recipe for continued growth in the UK early years sector, so long as the recent challenges around execution can be met.
Written with thanks to Arash Fatemian and Madeline Alcock.
