Budget 2023: Alliance comments on reports of £4bn investment into the early years and wider childcare sector

The Early Years Alliance has issued a comment following  that the Chancellor is set to announce an additional £4bn investment into the early years and wider childcare sector tomorrow, including increased funding rates for existing entitlement offers and an extension of the 30 hours to one- and two-year-olds, and that the government intends to push ahead with plans to relax ratios for two-year-olds in nurseries and pre-schools.

Commenting, Neil Leitch, CEO of the Early Years Alliance, said: 

"While on the surface, news that the government has reportedly committed to spending £4bn on the early years appear positive, as always, the devil is in the detail, and we await further confirmation about what this will mean for the early years sector over the coming months and years.

“We know from harsh experience that what can sound like an impressive investment in theory can end up being wholly inadequate in practice, and so understanding exactly how this announcement will translate into hourly funding rate changes, especially in light of the extension of the 30 hours offer to one- and two-year-olds, will be key to understanding the impact on the sector.

“We know that the sector is facing its most challenging time in decades – settings are closing at record levels, there is a severe recruitment and retention crisis, and costs continue to soar. Unless the government puts in safeguards to ensure that funding for all early entitlement offers continues to meet the sharply rising costs of delivering places, not only now but in the future, what is currently a crisis will end up in catastrophe.

Commenting on plans to relax ratios, Neil said: 

“Early education and care is a vital part of the wider education system and the announcement of a significant increase in investment should have marked the start of a renewed approach in terms of how the sector is valued and treated.

“It is all the more disappointing, therefore, that this progress has been undermined by the government’s reported decision to push ahead with relaxing ratios.

“Ever since this policy was first floated, it has received almost universal opposition. What exactly was the point of consulting if ministers were already going to completely ignore the needs of providers and parents and charge ahead regardless?

“The reality is that relaxing ratios risks severely compromising the safety and quality of care and education our youngest children receive at a time when they need more individual care and attention than ever before, while doing little, if anything, to lower costs for parents. 

“Worse still, at a time when the sector is dealing with a severe staffing crisis, it places even more pressure on a workforce that is already stretched to its limit.”

“We urge the government to rethink this shameful plan. At a time when we finally seem to be making some progress, policies that undermine the quality of care and education that children receive are the last thing we need."