You are here: News 30 hours: winners and losers among London childcare providers

26th March 2018
By Mark Bou Mansour

New research commissioned by the Mayor of London reveals that the government’s funding rates for the 30 hours childcare offer is creating winners and losers in the capital.  In 58 per cent of London boroughs, childcare providers are receiving less in funding to deliver free childcare for three and four year olds than what parents would have paid for that care – but in the other 42 per cent of boroughs the funding rate is higher.

The Family and Childcare Trust found that childcare providers in nearly a quarter of London boroughs will see the funding they receive to deliver the 30 hours offer drop by an average of 5 per cent from April this year, while childcare providers in another third of London boroughs will see their funding go up by 8 per cent.

Childcare providers reported that their largest cost driver was staff – both paying their wages and providing training. The report also found large variations in costs between different providers based on their location, type of setting, support from their local authority, age and how full the setting was.

The new research is part of a broader package of work to support the early years sector by Sadiq Khan. Today City Hall lays out plans to measure progress in improving childcare and early years provision in London and the actions they are  taking to support this. The action plan includes a new Childcare Sufficiency Assessment template for London’s local authorities to help them understand whether they have enough local childcare places and the London Family Fund which has been designed to promote social integration among parents and families.

The Mayor of London, Sadiq Khan, said: 

“Every child in London deserves the best start in life, no matter what their background. Improving both quality and access to early-years education ensures London’s children arrive at school ready to learn and have a better chance to succeed later on in life. At this time of change and uncertainty for the early-years sector, it is vital that Government steps up to offer them the support they need to deliver these ambitious policies.

“We want to improve the quality and access to early-years provision for all children – that’s why we’ve invested over £500,000 in Early Years Hubs and will be closely watching how well the childcare market is working for families.”

Deputy Mayor for Education and Childcare, Joanne McCartney, said:

“At City Hall, we are committed to making sure every young Londoner gets the best start in life and that parents are able to make positive choices about work and care. We are setting out how we plan to support the early-years sector to achieve this and how we will know whether it is working for families. We are calling on parents, childcare providers and people working with young children to give their views on our approach by responding to our consultation.”

Ellen Broomé, Cheif Executive at the Family and Childcare Trust, said:

“Childcare is as vital as the rails and roads to making our country run: it boosts children’s outcomes, supports parents to work and provides our economy with a reliable workforce. We know that parents welcome the bold 30 hours offer – but it will only work if childcare providers can afford to deliver it. Government needs to review the funding rates for 30 hours annually to make sure childcare providers can keep their doors open and deliver high quality childcare.”

-ENDS-

Contact: Mark Bou Mansour, Communications and Campaigns Manager, Family and Childcare Trust, telephone: 020 7940 7535, mobile: 07538 334 772, mark@familyandchildcaretrust.org.

Full report

Notes to Editor:

  1. The Family and Childcare Trust were commissioned by the GLA to complete research into childcare in London including: childcare costs; reasons for childminders leaving the market; creating a Childcare Sufficiency Assessment template for London local authorities; and developing a baseline and theory of change

  2. The Family and Childcare Trust’s Childcare and early education funding in London report found that in 58 per cent of London boroughs, the average price paid by parents of three and four year olds exceed the average payments that settings receive from Government. In 50 per cent of London boroughs, the average price paid by parents of two year olds exceed the average payments that settings receive from Government. Settings in these areas will be more vulnerable to losing money due to the extension of the free entitlement, as parents will be paying for less care.

  3. The Family and Childcare Trust’s Childcare Survey 2018 found that childcare prices have surged at double rate of inflation, undermining Government’s new investments, and that London has the highest childcare costs in Great Britain. The survey was published on 28 February 2018. https://www.familyandchildcaretrust.org/childcare-prices-surge-double-rate-inflation-undermining-government%E2%80%99s-new-investments

  4. The Greater London Authority have today published Early Years in London: A baseline and consultation. The deadline for consultation responses is 28 May 2018.  www.london.gov.uk/early-years-consultation

  5. Further information on the GLA’s early years plans and the Childcare Sufficiency Assessment template for London’s local authorities can be found at  www.london.gov.uk/early-years

  6. The London Family Fund will award grants of up to £85,000 to innovative projects that promote social integration in London.  To find out more about the fund and how to apply, please visit: https://www.london.gov.uk/what-we-do/communities/london-family-fund

About the Family and Childcare Trust

The Family and Childcare Trust works to make the UK a better place for families by bringing together what we learn from our on the ground parent-led programmes and our research to campaign for solutions that parents want and need. We focus on childcare and early years to make a difference to families’ lives now and in the long term.

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