Select Committee on Public Accounts Thirty-Eighth Report


1  Departmental and local authority management of the Sure Start children's centres programme

1. Sure Start is the Government programme to improve services for children by bringing together early education, childcare, health and family support. International evidence[2] shows that particating in a programme that combines these sevices improves the life chances of children, particularly if they are from deprived backgrounds. Sure Start children's centres offer the opportunity for many different services to be provided together in convenient community settings.[3]

2. The new centres will have to be built and opened very quickly if the Department for Education and Skills is to achieve its target of 3,500 centres by 2010. Since March 2006, local authorities have taken over the responsibility for creating and managing the new centres. There were around 1,000 open by September 2006, with a further 1,500 planned by March 2008. Although most centres in Phase 1 of the programme have been developed from facilities formed from earlier initiatives, only three quarters of the target number of Phase 1 centres in the sample examined by the National Audit Office were in operation by March 2006. The centres in Phase 2 (to 2008) and Phase 3 (to 2010) will mainly be new centres. The Department recognises that the programme is ambitious, and has engaged a consortium, Together for Children,[4] to help keep local authorities on track.[5]

3. Local authorities are responsible for managing local service levels, though they are bound by a Memorandum of Understanding with the Department. The Memorandum sets out what the Government requires in return for the General Sure Start Grant, which the Department allocates to authorities for children's centre funding using formulae for each of the first two phases of the children's centre programme. The rapid increase in children's centres creates a risk that services will be diluted. While the earliest centres were based in deprived areas, the new approach of guaranteeing a centre for every community means that resources will have to be spread more thinly. There is a risk that effective services for the whole community could come at a cost of reduced services for the most disadvantaged families.[6]

4. It will take several years for the full impact of children's centres to become clear. The Department expects to complete a five-year evaluation of the centres in 2008-09, at which point it considers that it would be possible to assess some of the benefits to young children and families.[7] Medium and long-term impacts, for example on academic performance and on health, will take some time. Early evaluations have only shown marginal impacts, but both positive and negative effects were relatively small, as would be expected at an early stage of the programme.[8] The Department considers that it would be difficult to assess wider public support for the programme, although the users of centres the National Audit Office consulted were generally satisfied.[9]

5. The Department is not evaluating whether people who have used Sure Start centres fare better than those who do not. Instead, the Department's evaluation of Sure Start Local Programmes is focusing on what impact the programme has made on all families with young children in the areas they serve. It is therefore difficult to tell whether the centres are providing value for money services that could not have been achieved by other means.[10] The National Audit Office report showed that centres were less good at meeting the needs of some groups, such as fathers and some minority ethnic communities, than others such as lone parents. The report also found that many non-users had strong preconceptions about the types of people whom the centres are meant to serve.[11]

6. The Sure Start programme represents a major investment in public services. Not enough is being done to monitor how effectively funds are spent. The Accounting Officer was unable to provide information at the Committee's hearing on how much had been spent on Sure Start since 1998. Subsequently it confirmed that from April 1997 up to March 2006, it has spent some £4.8 billion on early years' initiatives, of which £2.1 billion has been spent on Sure Start Local Programmes and children's centres (Figure 1). A further £1.8 billion is to be spent by 2008.[12] However, most of the local authorities interviewed by the National Audit Office did not have a good understanding of how much services should cost, and more than half of them have not been monitoring performance. There is therefore no clear evidence that funds are being spent in the areas where they are needed most. The Department accepts that local authorities need to improve the way they administer and monitor spending on children's centres, and in November 2006 issued guidance to local authorities on performance measurement and monitoring. The Department believes that the Together for Children partnership, as well as Ofsted-led joint area reviews, will help in monitoring the efficacy of children's centres.[13]Figure 1: Department for Education and Skills' expenditure on Sure Start programmes 1997-98 to 2005-06

The Department has spent £4.8 billion on Sure Start programmes since April 1997, of which £2.1 billion was spent on Sure Start local programmes and children's centres.

Note: The figure for children's centres and Sure Start Local Programmes for 2005-06 is provisional.
Source: Department for Education and Skills

7. A third of the children's centres that the National Audit Office visited in the fourth quarter of 2005-06 could not provide a financial forecast for 2006-07 as they did not have an agreed budget with their local authority. Where centres are uncertain about the funding that they will receive in future, they can find it hard to plan services and retain staff. They may also be obliged to devote resources to fundraising, when the resources could be used more profitably in providing services. Added uncertainty may in future arise in local authorities which operate Local Area Agreements. They can include children's centre funding in their Agreement, which sets out the area's priorities as agreed between central government, the local authority and other local partners. These authorities have wider discretion about how to use the funds that they receive from central government, though centres must provide a common core of services and the Memorandum of Understanding between local authorities and the Department sets out expectations. To make the best use of funding, local authorities will need to take account of local factors such as rurality and changes in demand for childcare when allocating budgets between centres.[14]


2   C&AG's Report, Appendix 4 Back

3   C&AG's Report, paras 1.1-1.8 Back

4   The consortium is led by Serco and includes CareandHealth, ContinYou, 4Children and PA Consulting. It works with relevant partners including Government Offices, the Training and Development Agency, the Department's architectural consultants and Ofsted. Back

5   C&AG's Report, paras 1.2-1.6, 1.15; Qq 1, 3, 12-13, 19 Back

6   C&AG's Report, para 2.3, Appendix 2; Qq 9, 42-43, 61-64, 110 Back

7   Qq 55-58 Back

8   C&AG's Report para 4.5, Box 19; Qq 37-38, 101 Back

9   C&AG's Report, para 3.14; Q59 Back

10   C&AG's Report Box 19; Qq 34-36, 104 Back

11   C&AG's Report, paras 3.24-3.26 Back

12   Qq 51-54, 79-88, 114; Ev 17 Back

13   C&AG's Report para 2.22; Qq 9-10, 15-17, 91, 111  Back

14   C&AG's Report, Preface, paras 1.13, 2.8 and footnote 2 on page 9; Qq 2, 26, 40, 61-64, 112 Back


 
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Prepared 17 July 2007