Select Committee on Public Accounts Thirty-Eighth Report



Conclusions and recommendations

1.  Although most Phase 1 centres were based on existing Sure Start or other programmes, only three-quarters of the target number in the sample examined by the National Audit Office were in operation by March 2006. The Phase 2 target is especially challenging because most centres are starting from scratch, and local authorities have continuing responsibility for the centres established under Phase 1. The Department should ask each local authority involved in Phase 1, 2 or both to assess and report on its capability to meet its target for establishing new centres, while also improving their management and delivery of services in existing centres. Where a local authority has gaps in capability that may jeopardise its management of the children's centre programme, the Department should consider mitigating actions, such as re-profiling the area's programme to give the authority time to develop capability and consolidate existing centres before new centres are created.

2.  The rapid increase in children's centres creates a risk that the focus on improving services for disadvantaged families will be lost. While the earliest centres were based in deprived areas, the guarantee of a centre for every community means that resources will have to be spread more thinly. Local authorities should distribute resources so that disadvantaged families continue to be a priority.

3.  Only a third of the 134 staff working children's centres whom the National Audit Office interviewed felt well qualified to perform their roles. There is a risk that the number of people being trained under the Department's early years professional scheme will not meet the demand for planned new centres over the next 2 to 3 years, especially given the requirements of the range of other organisations in the early years sector in which newly trained staff can also choose to work. The Department should ask local authorities to evidence their commitments to the development of existing staff and, through the Learning and Skills Council, it should assess the requirement for new training places for potential childcare workers.

4.  Disadvantaged families often rely on services provided by a range of different providers, and these can be more accessible and effective if available through a single children's centre. Getting people from different organisations to collaborate effectively is a major challenge for centre managers and they need practical advice. Good collaborative practices include using early contacts by health staff to help identify families who need most support, and outreach to break down barriers for hard to reach groups. The Department should facilitate dissemination of such practices, for example through a web-based tool for sharing experiences.

5.  Most children's centres are not doing enough to reach the most disadvantaged families. Only one third of the centres visited by the National Audit Office had proactively sought out hard to reach families. Parents felt centres were less good at meeting the needs of groups such as fathers and some minority ethnic communities, while some did not use centres because of preconceptions about who the types of people they were intended to serve. Centres should adopt the kinds of strategies outlined in the National Audit Office's report to identify disadvantaged families and communities, develop effective outreach with community and voluntary organisations, and provide a welcoming environment in the centre and services to support their children's development that users will value and want to use. Centres should seek help from national and local voluntary groups that have expertise in reaching disadvantaged families and gaining their trust.

6.  Running a children's centre requires a wide range of skills, including business management, financial management and skills in managing diverse relationships. Many children's centre managers would benefit from having more support; for example, except in some centres based on former Sure Start Local Programmes, centre managers received little financial management support. Local authorities should facilitate centres in collaborating to buy in expertise or use existing shared services. Local authorities also should provide earlier indicative budgets so that centres can produce timely financial plans for the coming year.

7.  Neither children's centres nor local authorities have good information on what individual children's centre services should cost, leading to a risk that funds are not being deployed cost-effectively or to areas of greatest need. Neither the Department's evaluation of Sure Start nor the local monitoring done to date gives enough evidence on whether the £2.1 billion spent from April 1997 to March 2006 has been cost-effective. Indeed, the Accounting Officer could not provide this expenditure figure at the Committee's hearing. We expect Accounting Officer's to have such basic information readily available when they appear before us. As more funding becomes available for new children's centres, the scope to reallocate funds will increase, but the cost data to underpin effective re-allocation does not yet exist. Local authorities should assess the unit costs of the main children's centre services. They should develop indicative benchmarks, along the lines of those illustrated in the National Audit Office's report, to inform the budget setting for their centres and to provide a baseline for identifying and investigating services where costs are relatively high.

8.  Lack of clarity over the cost-effectiveness of the children's centre programme could increase further in future unless expenditure, outputs and outcomes are properly monitored. Under Local Area Agreements, local authorities will have more freedom to move resources between services. This flexibility could lead to better value for money, but only if the agreement specifies clearly what is to be achieved and it is possible to demonstrate achievement. The Department and local authorities should develop a form of monitoring of Local Area Agreements that makes clear the services to be delivered, the outcomes to be achieved and how cost-effectiveness will be assessed, drawing on the model for measurement in the National Audit Office report as appropriate. The Department could also use longitudinal data from the National Evaluation of Sure Start to assess whether the programme has been benefiting some groups more than others.

9.  Uncertainty about future funding has increased the difficulty of managing some centres. Centres need to know their funding allocations in good time to plan services, but when the National Audit Office visited them in spring 2006, a third did not know their budgets for the forthcoming year. The Department's guidance on the next phase of children's centre roll out should encourage local authorities and centres to have early discussions about budgets, to allow allocations to be planned well in advance of the new financial year.

10.  Partnerships with Primary Care Trusts have been slow to develop. Involving health closely in children's centres has a double benefit by providing a service most families need, and bringing more families into a centre, but pressures at Primary Care Trusts have contributed to difficulties in achieving more commitment from the health sector. All Trusts should establish agreements with local authorities to provide child and family health services through children's centres.

11.  Families with children with disabilities need better information on what services they can expect to be provided in children's centres and help with referral to services that the centre cannot provide itself. For some disabled children, children's centres can play an important part, for example by providing early help for children with speech and language difficulties, which can potentially reduce the need for more expensive support as a child gets older. Centres should communicate clearly which of these services they can provide directly. Children with severe disabilities will require specialist support beyond what can be delivered in centres, and centres should help families to review the available options and access the most appropriate services.


 
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Prepared 17 July 2007