With their new coalition Government, David Cameron and Nick Clegg are taking the helm at a time of huge economic and political uncertainty. While Clegg's admission that we will see 'bumps and scrapes' along the way rings very true, it is important that we give the new administration a chance to bed in, and iron out their political differences for the sake of the country's post-downturn recovery.
While the finer points of power sharing and agreeing policies remain to be seen, it was heartening to see that both the Conservatives and the Liberal Democrats recognised in their manifestoes the importance of early years education, supporting families and reducing disadvantage. However, we noted that discussion of early years policies did not feature in the draft coalition agreement. The Major Providers Group sincerely hopes that previous pledges become a reality in the coming months.
OUR CURRENT CONCERNS
Sustainability
At the beginning of the year, we agreed that sustainability should be one of our key areas of focus. There was no need to argue the case for its inclusion; members of the group reported that their settings had been feeling the impact of the economic downturn.
The group has also heard troubling anecdotal evidence from both voluntary and private providers struggling to balance the books due to being hit by a range of setbacks, including low nursery occupancy, staff recruitment difficulties and the extra spending demanded by promotion and driving up quality and standards.
As another consequence of the recession, many settings have faced increased difficulties filling full-time places and collecting fees from parents, with a very mixed picture emerging, according to different regional patterns of unemployment.
While the extension of the flexible free entitlement in September 2010 should help parents who are experiencing the financial squeeze, we have significant concerns over inadequate and varying rates of financial support offered to providers. The group has confirmed universal support for the principle of the free entitlement, but there is still a mountain to climb in terms of ensuring that the approach to funding is transparent and equitable across the board.
Last year's Manchester Business School Report, which the Major Providers Group commissioned, raised serious questions about variable funding rates for the free entitlement. The report revealed that almost £1bn of the budget for the free entitlement had been absorbed as administrative and other management charges. Clearly, if we are to ensure the long-term stability of the early years sector, it is critical that allocated funding is used for the purposes for which it was originally intended.
We warned that in an environment of increasing cost pressures, any withholding of free entitlement funding could cause PVI providers to exit the market and establish a two-tier system of provision. The commendable aspiration to offer all parents a choice of flexible, affordable and accessible childcare will seriously fail if the issues relating to transparency and inconsistent guidance are not addressed.
The Single Funding Formula - now postponed until April 2011 - aspires to create a 'level playing field' for providers and improve the transparency of how they are funded across the sector. However, its success will depend on local authorities making the most of this 'stay of execution' and using the interim period to consult with providers and tackle any teething problems.
Supporting the workforce
Another key area of activity this year is recognising and voicing the concerns of the early years workforce. While the outgoing Government should be applauded for pushing the early years up the political agenda and making unparalleled investment in the sector during its time in power, it is essential that the new administration listens to the sector and allows practitioners a consolidation period to adjust to and build on the many changes that have already been implemented.
One such change - the implementation of the Early Years Foundation Stage - has courted more than its fair share of controversy. The experience of the group demonstrates that the new framework has been broadly well received by practitioners, with many welcoming the opportunity to develop child-led learning that recognises individual needs and interests. Unsurprisingly, there are some areas of improvement to address, especially looking at ways to reduce the increased administrative burden and support all staff to get up to speed with the framework.
The Major Providers Group is similarly supportive of the aspiration to professionalise the workforce. However, this needs to be adequately resourced at the supply-side, and the question still needs to be answered as to who is expected to fund this.
WHAT WE WANT FROM THE NEW GOVERNMENT
Although the new coalition Government clearly has a lot on its plate, it is critical that it continues to recognise the importance of the early years, especially as it plays such a vital role in supporting Government priority areas for action, such as child poverty and social mobility.
The proposed £6bn cuts in public spending are a concern across the board, and while there are clearly some tough decisions to be made, we sincerely hope that this will not jeopardise the progress that has been made in bringing the early years sector to the position it is in now.
While it remains to be seen which measures Michael Gove, the new education secretary, will put into place first, we were particularly pleased to see that the Conservative manifesto pledged to establish an early years support team, and we trust that this shows recognition of the value and contribution that the PVI sector makes in supporting children and families.
We, of course, welcome both the Conservatives' and the Liberal Democrats' stated intention to reduce the administrative burden placed on early years providers following the introduction of the Early Years Foundation Stage. However, we would caution that revising the framework too much at this stage runs the risk of destabilising the sector at a time when it is still adjusting to various initiatives.
More than anything, we hope that the new Government listens to the sector and acts on its concerns. The Major Providers Group had developed a positive relationship with the previous Government and the Department for Children, Schools and Families, and we would hope that this relationship can continue moving forward. We will continue to ensure that the views of providers are represented at all levels of Government. This will be supported by a range of activity throughout the year. While there are many challenges ahead, we will continue to fly the flag for well-resourced, quality childcare.
The Major Providers Group is made up of some of the biggest childcare providers in England
