If the private, voluntary and independent (PVI) sector gets behind the funded offer, it has the power to make it a success. However, it will only do this if it is recognised as a genuine business opportunity.
The main plank of the business rationale is that the programme addresses low take-up of formal childcare within the eligible groups, thereby bringing more children into the market and potentially increasing the number of children who follow through to the free offer at three and four. Investment in staff training, premises and resources for the offer could also mean that a setting's provision and quality is boosted overall.
But funding is an issue. Despite the fact that the hourly funding rate is higher than that for three- and four-year-olds, the National Day Nurseries Association's (NDNA) latest business survey highlights that many providers in England are still struggling to meet costs. Barriers cited include the additional funding and time involved in areas of good practice, such as home visits and multi-agency meetings, and having staff able to meet the needs of all children on the programme.
Many settings are also struggling to ensure that a business plan based on a more flexible offer is workable and sustainable, and in some cases plans are stalling because authorities are slow to make funding decisions.
On the positive side, the survey reveals that out of its sample, nearly two-thirds of nurseries will definitely, or are likely to, get involved.
Undoubtedly, in its first phase, most places for the programme are being created by using spare capacity or adapting existing premises to take more twos. While there is £100m in capital funding available through local authorities to support physical expansion and adaptions this year, the NDNA survey highlights that few providers are currently embarking on major expansions. The number of twos places is averaging at around 11 for each setting and this will need to increase to meet the targets for 2014.
OVERALL BOOST
Family-owned business York Nurseries, based just outside Burnley in Lancashire, supports the view that the two-year-old programme is an exciting opportunity.
It is currently creating extra capacity for twos by using empty space in its listed building. It will be knocking some of its smaller rooms together to form larger, more usable spaces suitable for accommodating challenging activities and additional equipment.
In terms of funding, it has accessed £60,000 for large building works, £1,200 for resources and £1,200 for staff salaries and training.
'Our bathroom is being re-modelled to make it more friendly for toilet changing and we will be creating more cosy seating and storage areas,' says joint owner Heather Langridge. 'Our art room and "messy" room are being re-fitted with many more storage units and all the floor units will have doors on them so children can access the resources.'
York Nurseries currently has 11 to 12 two-year-olds attending each of its morning and afternoon sessions, and three of those children are currently funded. Ms Langdridge says, 'When we have finished our expansion work we will technically have space for 59 twos in each session, but we have decided to cap this to 48 at any one time. We are planning on a phased increase in numbers over the next two years, which has been agreed with Lancashire County Council.'
York Nurseries believes its expansion to meet demand for two-year-olds will have a positive impact on its overall sustainability.
'This is because we will have natural through-put to the pre-school building and there will be improvements in staff training and qualifications, which will benefit outcomes for all ages of children. We feel two-year-olds cannot be taken in isolation - they are part of the whole of our setting and our ongoing improvement.'
York Nurseries has worked hard to refine its business plan and ensure the sums add up. 'I have had many meetings with Lancashire Council, which has put together lots of spreadsheets that all interlink so we can make sure the numbers stack up,' says Ms Langridge
'We are accessing two of the grants available, for staff improvement and training and capital building. It has been a fairly straightforward process, involving meetings and putting in a lot of donkey work with the spreadsheets. The hardest part has been finding builders willing to quote and complete the work by 9 September.'
LOCAL AUTHORITY SUPPORT
Tower Hamlets is providing an example of a local authority determined to provide business support to local providers. It is currently gearing up for an early years event on 18 July to encourage providers to participate in the twos programme.
There are 500 places available for eligible twos in the inner London borough and the aim is to create an additional 800 places by this September, and a further 1,400 in 2014. Tower Hamlets has a high population of young children and more than 50 per cent of them are eligible for free school meals. The council says it is keen to not just hit the target as far as numbers are concerned but to mirror the fact that every state-maintained secondary school in the borough is graded good or outstanding.
The forthcoming event will inform all interested parties inside and outside the borough about what support is available, and new providers will be invited to join the Tower Hamlets Business Forum, part of the council's Enterprise Strategy.
The council has identified a range of key strategies to boost twos places in the borough. These include creating more part-time places in schools, moving three-year-olds from PVI providers to schools to free up places for two-year-olds, and assessing all current providers to determine whether they can accommodate additional twos. It is also joining up work with school planning, building a register of available properties in the area and working with childminders to ensure they are accredited.
Tower Hamlets joined the Government's two-year-old pilot in 2006 and has been evaluating best practice since then. Twenty-six settings in Tower Hamlets now use the Infant Toddler Environment Rating Scale (ITERS-R), which evaluates provision for children from birth to 30 months, and the Early Childhood Environment Rating Scale (ECERS-R), which evaluates provision for children aged 30 months to five years. Twenty childcarers are currently undergoing training for the ECERS-R/ITERS-R, and this is carried out by practitioners alongside council staff, enabling the audit to be understood and carried out jointly with providers.
Tower Hamlet's mayor, Lutfur Rahman, says the borough is committed to meeting the Government's targets for funded two-year-olds. 'We have a comprehensive support framework for new early years providers in Tower Hamlets, and I urge potential providers to attend the early years event to find out more about the vision we have for education across the borough for our children and young people.'
MEETING LOCAL NEEDS
In a similar spirit of collaboration, Achieving Two-Year-Olds (A2YO) is aiming to bring local authorities and local providers together for a series of regional roadshows, designed to disseminate the latest funding information and provide tailored business support.
Each meeting will provide updates from the Department for Education (DfE) - round-table discussions looking at progress with input from settings delivering the offer. The aim is to explore how potential barriers can be overcome.
James Hempsall, director of Hempsall's and national support director for A2YO, says, 'The provider roadshows give providers an opportunity to meet our team, hear about what's happening with two-year-old places across the whole country and discuss ideas for how places can be created, with an important focus on business and sustainability and quality.'
A2YO is currently working with different local authorities to set the events up. 'Some of the roadshows will be cross-border, which provides useful opportunities to develop new partnerships too,' he adds. 'We want to deliver what people want locally, so some roadshows will be small and short in duration and others may be much larger and longer.'
2013-14 HOURLY RATES
Based on local authority estimates in January 2013
National £5.03
Central £4.89
East £5.03
London £5.72
North £4.81
South £5.04
Source: Dfe
ACCESSING SUPPORT
4Children's Business Skills Support Hub
Downloadable resources and information on everything from business planning, finance and marketing to managing employees and governance and legal structures.
www.4children.org.uk/businessskills
NDNA
Business support training courses on marketing and expansion, and reshaping your business around two-year-olds
Childcare Business Grants Scheme
Government grants are available to help with the setting up of new childcare businesses. There is also access to a free business mentor to help with the start-up process.
Tower Hamlets training event
Event on 18 July offering information on what support is available in the borough for providers participating in the twos programme.
eytraining@towerhamlets.gov.uk; 0207 364 7947
A2YO Roadshows
Seven regional dates are confirmed for September and October, organised by A2YO's regional leads.
The contacts are:
North - jopringle@hempsalls.com
Central - james@hempsalls.com
London and East - barbara@hempsalls.com
South - ann@hempsalls.coma
Take twos ...
For Nursery World's monthly series of case studies, go to www.nurseryworld.co.uk/take-twos.
