UK Poverty Post

Nurseries on the brink

On Tuesday the Guardian carried an article highlighting the unintended danger posed to state nurseries by the new early years single funding formula that will come into force from September 2010. Parents reading this will be delighted to know if they didn’t already that free nursery provision will increase from 12 and half hours to 15 hours a week from next September. Yet we have underestimated the cost of delivering this policy without badly harming the services that help many of the poorest families.

The new formula requisitions large chunks of income from Britain’s 430 state-funded nurseries so that these public funds can be spread thinly across all nurseries, without assessment of the destination of the redistribution of funds (Mick Brookes from the National Association of Head Teachers points out that nurseries qualifying could technically be run out of a garage). The formula was introduced to secure the private nursery sector’s acquiescence in delivering the Government’s pledge to extend free nursery provision from 12 and half hours to 15 hours a week, which would be an immensely valuable achievement. The formula – fair in principle given this increased burden on private providers – is likely to have a catastrophic impact on state nurseries from around April 2010 when nurseries must confirm how they will deliver extended services from September.

Those nurseries affected may well need to drastically increase class sizes to win funds (probably by letting staff go) or hire cheaper and lower quality staff, both measures that could dramatically reduce the quality of care. Fees beyond the statutory 15 hours could be hiked, and in the worse instances nurseries could just shut up shop if all attempts at raising funds fail. A key ingredient in this recipe for disaster is that Britain’s 430 state-funded nurseries disproportionately provide for the poorest. Price hikes could create a spiral of decline because nurseries in poor areas that try to raise revenue by increasing charges are likely to lose parents who often balance the cost of care against the small returns to be gleaned from low-paid work.

This cuts to the heart of what we know about mothers experiencing poverty who will more than ever have to ask ‘Can I break even?’ ‘Will I be able to arrange getting my children to care?’ ‘What favours will I have to call in from neighbours and family?’ Deteriorating services, increased charging or closures mean that mothers in poverty are less likely to stay in jobs or get new ones because they simply can’t afford to pay for the childcare they need to buy to work. In short, this development could directly prejudice the life chances of some of Britain’s most vulnerable children. What is perhaps most tragic about the plight of state facilities is that they are amongst the best. 87% are rated good or better by Ofsted.

We need to take immediate action to control the situation. A limit to funding reallocation could help but we shouldn’t forget that the formula is the basis of the extension of free care across all nurseries. Decision-makers must recognise that these approaching storm clouds show that the cost of the admirable extension of free care was underestimated. Ultimately greater investment will be required to ensure that care for the poorest doesn’t deteriorate – directly damaging their wellbeing and their ability to contribute to society. Perhaps the proximity of the next General Election (likely to fall on 6th May) to the April deadline will help to concentrate decision makers’ minds on averting catastrophe for some of Britain’s best and most valuable nurseries.

Yesterday the Commons Children, Schools and Families Select Committee announced a new inquiry into the Early Years Single Funding Formula. If you are well placed to offer insight on this issue then please respond to the inquiry. Written submissions are due by noon on Tuesday 1 December 2009.