Spring Budget 2023: Four Weeks On

The following evidence was submitted to Conservative MP for Stroud and vocal advocate for Childminders, Siobhan Baillie. The following evidence is taken from direct consultation with PACEY?members, through previous surveys, workshops and Q&A sessions.??

Please note, PACEY is currently running a survey for England members to collect feedback on the recent childcare proposals in the Spring 2023 Budget. For those PACEY members who live in Wales, we are awaiting the publication of the Independent Review of Childminding in May before publishing a survey specific to childcare in Wales.?

Background?

There is a desperate decline in childminder numbers, such that at the current rate there will only be 1000 childminders left in England in 2035. That is from a height of nearly 60,000.??

2010- 57,732 Childminders?

2020- 35,736 Childminders?

2030- 12,668 Predicted Childminders?

2035- 1,081 Predicted Childminders?

In March 2021 only 48% of childminders said they are confident that their childminding service will be viable in 12 months.??

Spring Budget 2023??

While we of course welcomed the inclusion of childcare in the spring 2023 budget, we feel there are a number of anomalies and areas where the proposals will have unintended adverse consequences:?

Parents on Universal Credit will receive childcare support upfront rather than in arrears (England and Wales)?

There is overwhelming support amongst childminders for the move to upfront payments of childcare help and a belief that it will allow childminders to help more disadvantaged children and their families.?

A change in adult-to-child ratios (England Only)?

The response from childminders in regard to ratios is a little more nuanced than the rest of the sector. When we asked members if they agreed with the changing of staff to child to 1:5, we received the following response.?

Strongly agree 11.80%?

Agree 17.39%?

Neither agree nor disagree 18.01%?

Disagree 28.57%?

Strongly disagree 24.22%?

Although little attention has been paid to it, there are also proposed changes to wording around staff to child ratios for childminders in England when caring for sibling groups and their own children.?

More details can be found here .

In general, these proposals are welcomed by childminders in England for the increased flexibility and earning potential that they provide, and by parents, allowing them more choice if they are looking for provision for siblings. When asked about the proposal to update the terminology within the EYFS to be clearer that childminders can exceed ratios when caring for sibling babies and sibling children (75% of our survey respondents agreed) and for their own babies and children (68% agreed).?

An uplift in the hourly rate paid to providers from September to provide funded childcare (England only)?

There is extensive evidence that the proposed extension of ‘’subsidised’’ (referred to as free) childcare places will not cover the cost of providing the extra places.?

In regard to childminders there is significant anxiety around the loss of independent income if, through the extension of entitlement funding in England, around 80% of income will come through local authorities. Childminders are concerned that this leaves them at the whim of local authority decisions. We have heard of many examples of poor practice and poor communication from Local Authorities in regard to the existing entitlement funding streams.??

Further, for many years childminders in England have been calling for a change to the way funding is paid. At the moment the dominant practice is to pay termly. Childminders would like to see that changed to monthly, allowing them to manage their cash flow and protecting them against changing circumstances, for example if one of the children in their care leaves their setting.??

Further, the widening of the entitlement funding exacerbates the existing problem for childminders around related children in England. Currently, childminders are unable to claim entitlement funding for children related to them. The Childcare Act makes it clear that ‘childminders cannot claim early years funding for their own child or a related child, even if they are claiming funding for other children.' There was a victory in Wales for childminders caring for related children back in 2018 to allow registered childminders to receive funding for the care of a child who is also a relative but who does not live with them.?

PACEY has already suggested a review of this rule in England as part of a wider package of support for childminders, as we know this is a major barrier for many. In our survey, 86% of respondents support a change in this rule.?

The change in ratios mentioned above will help, however the opportunity to also claim funding for their related child to receive early education should be considered alongside this proposed flexibility in ratios. We are aware of childminders ‘swapping’ their own children with other childminders to both ensure sustainability of the number of children they care for and to ensure their related children can still benefit from funded early education (but delivered by someone else).?

Changing that rule would support the well-being of children through continuity of care and attachments while also having a great impact on the sector. Under the new proposed ratio wording, the place that the childminder is ‘using up’ by having their child in the setting now becomes a profitable place for them and frees up the childminder that they whould have used to look after their own child to care for another.

Additional local authority funding for extra wraparound hours in primary schools (England only)?

Many childminders provide care for children before and after school. They offer a nourishing nurturing home style environment that supports children is well-being s not just more of the same in a school setting. They are understandably concerned that the proposals to install provide wraparound care in all primary schools will deprive childminders of business and undermine the unique flexibility that they provide. We are asking that local authorities should be obliged to audit provision in their area and allow flexibility where other providers already exist. In meeting with DfE officials it was suggested that ‘a partnership’ approach could be used. We ask that childminders are part of such partnerships.?

A ￡600 ‘start up grant’ for childminders with a higher payment for those who look to join a childminding agency (England Only)?

While we are concerned that there was no direct help being offered to existing childminders in the budget, we broadly welcome financial assistance for childminders to help them set up and cover initial costs.?

However, we are baffled by the huge difference between payments being proposed to be made to Ofsted registered childminders and those that join an agency in England, and we would like to see the rationale and data behind that decision. The vast majority of our members have told us they would not join an agency because they highly value their direct Ofsted registration and rating. Furthermore, they tell us that the finance model of agencies undermines their already limited profitability.?

Agencies do work for some childminders, however, despite them being in existence for nearly ten years there are still only six in England, accounting for just an estimated 3% of the childminder market. In their latest Ofsted report , one of the biggest agencies Koru aka Rua Kids Ltd reported having just 67 registered childminders.

In our recent Q&A, a childminder asked this question:?

‘’Will PACEY be challenging the discrimination shown by Government towards independent childminders compared to agency registered childminders in offering only ￡600 incentive payment to those registering directly with Ofsted but ￡1200 if registering with an agency?’’?

You will also be aware of the potential conflict of interest raised in Parliament this week. ?

Again, from a childminder:?

‘’There are serious implications for settings who are potentially receiving 80% of income from funding, if they receive an inadequate Ofsted inspection, as evidenced by the recent issues at the Rutland agency, with some LAs continuing to support funding, but many withdrawing it immediately. How can childminders whether agency or independent be protected in this situation? Especially with the government push to agencies.’’??

Childminders offer a unique, home based and flexible form of childcare within communities. They are particularly valuable to children with SEND needs and to families that need wider support. For children born during the pandemic they provide a calm setting, similar to home that can help overcome attachment, emotional and communication difficulties. If they were lost from the childcare and early years landscape, it would be a travesty.?