News

Early years Alliance calls on next government to provide emergency funding for struggling settings

The next government is being urged to provide an emergency financial rescue package for early years settings at risk of imminent closure due to financial pressures.
The Early Years Alliance has published its general election manifesto PHOTO Adobe Stock
The Early Years Alliance has published its general election manifesto PHOTO Adobe Stock

Within its manifesto, published following the announcement of the general election on 4 July, the Early Years Alliance (EYA) calls for the next government to provide emergency funding for settings at risk of closure in the short term due to years of underfunding amid rising business costs.

It also recommends a comprehensive independent review of funding be carried out to ensure the amount providers receive is increased to an ‘adequate level’ across all age groups.

It says this would include the introduction of a mechanism to guarantee that any future uplifts to the national minimum and living wages and wider inflationary pressures are accounted for through an automatic adjustment to funding rates.

Over the long term, the Alliance says it would support a ‘wholesale review and overhaul of the current system', along with the development of a new, simple, ‘streamlined’ system of financial support for families, providing them with fully-funded early years education and care year round from the end of maternity leave to the start of school, but once the sector has the infrastructure to support this.

The Alliance says it would be its ambition for funded hours to be available to all families, not just working households. If this isn’t possible, then a means-tested approach, where costs are fully covered for the lowest-income families and subsidised on a sliding scale for those with higher earnings.

As part of this, it would support the removal of the Tax-Free Childcare system which continues to be underused.

The manifesto makes a number of other recommendations, they are:

  • For additional government funding to be provided to cover meals and snacks in settings.
  • The introduction of clear payscales in the early years sector.
  • The development of a comprehensive recruitment and retention strategy.
  • Make all providers exempt from paying business rates and VAT on purchases.
  • Reverse the relaxation of ratios for two-year-olds, going back to staff to child ratios of 1:4, not 1:5.
  • For the Early Years Pupil Premium rates to match primary funding levels.
  • Adequate funding and support for children with SEND.
  • Allowing childminders to claim funding for related children.

'There remains little focus on quality in the development of current early years policy.'

The manifesto’s introduction states, ‘What is often missing from discussions and debates on the need for “more affordable childcare” is the value of early years provision from an educational perspective.

‘There remains little focus on quality in the development of current early years policy. In fact, a number of recent and impending changes – such as the relaxation of ratios in group settings and plans to reduce early years qualification requirements – are likely to have a detrimental impact on the quality of provision in early years settings.

'What’s more, the decision to target the extended offers solely at eligible working families risks widening the gap between disadvantaged children and their peers, and preventing those children who would benefit most accessing it.’

It concludes, ‘The Alliance’s vision for the future of the early years is one where early education and care is recognised as a fundamental part of the education system, supported by the wider child and family support services, including family hubs, children’s centres, baby and toddler groups and health visitors.’