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State of the market

Government facts and figures highlight influences on the childcare sector Figure 1 The most important factors influencing parents' selection of nursery or childcare providers (source: National Audit Office survey of parents of birth to four-year-olds)
Government facts and figures highlight influences on the childcare sector

Figure 1 The most important factors influencing parents' selection of nursery or childcare providers (source: National Audit Office survey of parents of birth to four-year-olds)

* Only a small proportion of parents in the National Audit Office surveys identified cost as one of the three most important factors in their choice of childcare provider.

* A 2002 Department for Education and Skills (DfES) study of parents'

demand for childcare found that overall two-thirds (67 per cent) of the providers used in the previous year were chosen by parents because they could be trusted. The next most common reason was that the provider would show their child affection. Thirty nine per cent of parents who used formal registered childcare providers stated that a good reputation was an important selection criterion.

Figure 2 Change in total number of childcare places 1999-2003 by year (source: data provided by local authorities to DfES)

* Between March 1999 and March 2003, 626,000 new childcare places were created in England. The majority were out-of-school places funded through the New Opportunities Fund (420,000 by August 2003).

* During the same period 301,000 childcare places closed.

Figure 3 How early years provision is paid for 2002-2003 (source: National Audit Office based on figures from the DfES, Inland Revenue and Laing and Buisson)

* The Childcare Tax Credit was replaced by the childcare element of the Working Tax Credit in 2003-04.

Figure 4 Percentage of three-year-olds by type of early years education provider, January 2003 (source: DfES)

* Over all types of early years education provider, the number of three-year-olds increased from 536,300 or 90 per cent of the three-year-old population in January 2002 to 571,300 or 99 per cent in January 2003.

* The number of three-year-olds at maintained nursery and primary schools decreased by 4,800 from 223,500 in January 2002 to 218,700 in January 2003.

* The number of three-year-olds at private and voluntary providers increased by 40,700 from 283,200 or 48 per cent of the three-year-old population in January 2002 to 323,900 or 56 per cent in January 2003.

Figure 5 Percentage of four-year-olds by type of early years education provider, January 2003 (source: DfES)

* Over all types of early years education provider, the total number of four-year-olds increased from 606,300 in January 2002 to 619,300 in January 2003.

* The number of four-year-olds at maintained nursery and primary schools decreased by 5,500 from 477,700 in January 2002 to 472,200 in January 2003.

* The number of four-year-olds taking up places at private and voluntary providers increased by 19,200 from 96,500 or 16 per cent of the four-year-old population in January 2002 to 115,700 or 19 per cent in January 2003.