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Truss to focus on childminder agencies in bid to cut childcare costs

The Prime Minister Liz Truss is to press ahead with plans to increase childminder agencies, reports reveal.
Childminder agencies will be given a greater role within the early years sector, reports suggest PHOTO Adobe Stock
Childminder agencies will be given a greater role within the early years sector, reports suggest PHOTO Adobe Stock

According to the Telegraph, Truss is to ‘drive the creation of new childminder agencies under a French-style system to reduce the cost of childcare’.

In a story published at the weekend, the paper states, ‘Agencies could be given public money to grow, while childminders could be released from individual Ofsted inspections, with regulation by the watchdog focusing on the agencies instead. Childminders could also be given permission to work from council homes.’

Currently, many social housing tenants are not allowed to run a childminding business from their property.

It goes on to include ‘a source familiar with discussion’, who states, "It (childminder agencies) is one of the few areas where you can make big reforms that don’t cost the Government money, but actually have a really positive impact.

“There’s not many places left like that.”

The news follows confirmation from the Chancellor Kwasi Kwarteng in the Growth Plan, the document published alongside the mini-budget, that the Government will be taking forward reforms to improve parents’ access to affordable and flexible childcare, with more detail on the plans due to be announced in ‘due course’.

Giving childminder agencies a larger role within the sector was one measure being considered by the Government in a bid to reduce the cost of childcare, along with slimming down the EYFS for childminders, and reducing staff to child ratios within early years settings.

The Telegraph said is thought that childminders will be ‘at the centre of Ms Truss’ package, with a focus on elevating the role of childminder agencies’, which she believes could help reverse the decline in the number of childminders.

The Early Years Alliance said the idea that increasing childminder agencies are even part of the answer to the problems currently facing the sector was ‘laughable.’

Chief executive Neil Leitch said, ‘In the eight years since then-early years minister Liz Truss firstly introduced childminder agencies in England, the number of childminders across the country has fallen from just under 52,000 to just over 31,000 - a decline of 40 per cent - while the number of agencies currently stands at a grand total of six. The idea, therefore, that agencies are even part of the answer to the problems currently facing the early years is simply laughable.

‘The Government’s utterly misguided fixation on deregulation will do nothing to address the many challenges currently facing the sector. If ministers are truly committed to tackling the early years crisis, they should look to invest what’s needed to deliver affordable, sustainable, high-quality childcare and early education. Attempting reform on the cheap is simply a waste of everyone’s time.’

Reports also suggest that civil servants at the Department for Education (DfE) have ‘taken a keen interest’ in a report published by the thinktank Policy Exchange in August that recommended boosting childminder agencies and removing regulatory burdens in the sector.

One recommendation in the Policy Exchange report under consideration would see childminders removed from registration and inspection by Ofsted.

A Department for Education spokesperson said, ‘As the Chancellor has confirmed, we will be taking forward reforms to make childcare easier to access and more affordable which will help boost economic growth through getting people back to work. We are exploring a wide range of options, but no decisions have been made.'

Helen Donohoe, policy advisor at PACEY, commented, 'PACEY has already made clear our position on these dusted-off proposals. We know that many Ofsted-registered childminders value their Ofsted grading to showcase their professionalism to prospective parents. Our members are now concerned that this choice could be taken away from them under the proposed plans.

'We understand the Government is looking into several possible options for reform, but so far these seem to focus on driving up the number of new childminders through agencies, without a long-term plan to retain the dedicated community of professionals we already have in our sector.

'Until the Government decides to address the true issues behind the childminder decline then no real progress will be made. There are plenty of sensible measures PACEY has put forward on behalf of our members which would make real difference in the sector, such as reversing the illogical rule that prevents childminders providing relatives with funded entitlements, and crucially reversing the chronic underfunding of our sector that stops childminders from earning a decent wage.'

Purnima Tanuku, chief executive of National Day Nurseries Association (NDNA), said, 'All providers of different shapes and sizes are focussed on the needs of their children and giving them the best outcomes.

'We all want standards to improve and for children to be safe. Government investment is an important part of achieving that.

'While looking at flexibilities could support nurseries, de-regulation is not a magic bullet that will reduce the cost of childcare for parents.'