Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 1-19)

22 JANUARY 2007

DEPARTMENT FOR EDUCATION AND SKILLS AND DEPARTMENT OF HEALTH

  Q1  Chairman: Good afternoon, everybody. Today we are considering the Comptroller and Auditor General's Report, Sure Start Children's Centres. We welcome David Bell and Sheila Scales from the Department for Education and Skills and Hilary Samson-Barry from the Department of Health. I also welcome the chair, vice-chair and staff of the Committee of Budget and Finance of the Portuguese Parliament and the delegation from the office of the Comptroller and Auditor General of India.

  May I start with Mr Bell? I am president of a Home Start scheme in my constituency, and the biggest complaint that I get is that the funding period is three years. We MPs give ourselves at least five years employment between elections. Why is the funding period just three years?

  David Bell: We have obviously committed the funding until the end of the spending review period. Of course, there are Government commitments to roll out the Sure Start children's centres to 3,500 by 2010. Obviously, consideration will be given as part of the comprehensive spending review to funding beyond that time. It is also worth noting the commitment to children's centres; the predecessor organisations have been running since 1998. We have a clear indication that the Government attach great priority to early intervention and children's centres.

  Q2  Chairman: I accept that, but the people who work in the centres often become fundraisers part-way through their existence because three years is just insufficient.

  David Bell: The bulk of the funding for children's centres will come from central Government. As I mentioned, that can be confirmed to the end of the spending review period. I cannot make any commitments, as I am sure that you will understand, into the next comprehensive spending review period—

  Q3  Chairman: It will stop? What do you mean by that?

  David Bell: The Government's commitment to early intervention and children's centres has been evident from 1998 onwards.

  Q4  Chairman: Research shows that, for children to get the best value, they need high-quality services at children's centres. How will you maintain that quality while local authorities drive to increase the numbers by 1,500? Is that not a rapid expansion of the service?

  David Bell: It is fair to say that it is an ambitious expansion. The Government believe strongly that intervention in the earliest years can have the longest term benefits. There is an important investment in the training of staff for children's centres. In the period 2004 to 2006, about £130 million within the general Sure Start grant has been assumed for training. At the same time, there is a substantial investment in the training of centre leaders, with a new national qualification for those running children's centres that recognises the particular expertise and specialism required. Yes, it is a rapid expansion, but there is a strong commitment to ensuring that staff are trained effectively to deal with what, for many, will be a new way of working.

  Q5  Chairman: I accept that there is a commitment, but I am not quite clear how you can ensure that the training is available.

  David Bell: It is for local authorities to determine the nature of the training with individual centres, in consultation with the Children's Workforce Development Council, which is the national body looking at the training and development of all staff working in those settings. There is a variety of ways in which that can be done. It can be done through local authorities or private providers organising the training and so on. The evidence is that a lot of the money is being used to train staff appropriately. We can say that on the basis of our understanding of what centres are actually spending their money on. We are giving a clear signal that training and development are important.

  Q6  Chairman: Paragraph 3.2 on page 25 shows that only 9% of centres proactively target special groups—perhaps the most disadvantaged groups. I talked today to the organisers of the centres in my area, and they tell me that they do not proactively seek clients as such; it is referral by neighbours or self-referral. How will you tackle that?

  David Bell: The Report highlights an important bit of business that needs to be done, and that is to target those that by definition are hardest to reach. Some of the good practice examples cited in the document demonstrate that you cannot sit in a children's centre and wait for the most hard to reach people to turn up. You have to go out and look for them. Some of the best centres have outreach workers going out and dealing with particular communities in order to find out what might meet their particular needs.

  Q7  Chairman: Are you piloting any of that to discover whether it works effectively?

  David Bell: Yes, and the guidance that we published in November 2006 highlights examples of good practice. We have also commissioned a national body that deals with families with children with disabilities, to help us to think about how we might target most effectively those who find it difficult to access services for one reason or another. However, from what the Report suggests, through its case studies—and we know that a number of centres are doing this—it is clear that we have to take the initiative, go out there and find out which are the hardest to reach groups in the community.

  Q8  Chairman: Spending time, as I have, in some of the children's centres in my constituency, I find that the informal social activities that the parents are engaged in—generally mothers, and often young mothers, talking over a cup of tea or coffee and a biscuit about getting help, getting the right food and about finding support and so forth—are most important. Do you see it as an important tool in expanding child care provision?

  David Bell: One of the successes so far of the move to children's centres is to bring parents, particularly mothers, into the centres to allow them to have that kind of informal discussion. At the same time, on the back of informal discussion, many of the services that children's centres offer, whether related to health or education, can be offered to those parents. Equally, however, the Report highlights the need to ensure that work is targeted towards those dads who might need or want support. The Report highlights the good example of a centre that is doing that, but as part of that harder to reach category that you described. We emphasise that we want to see more activity with dads; they obviously want to be involved in the care of their children.

  Q9  Chairman: If you turn to page 21 and figure 11, you will see three examples that show quite a disparity in expenditure on centres. Is there a danger, as responsibility for funding is passed to local authorities, that there will not be a proper audit? We need to ensure a uniform spend, so that the standard is fairly consistent across the country.

  David Bell: The first point is that the Report helpfully highlights some of the explanation for that variation. Interestingly, what is likely to happen as we move to a more consistent expectation of what children's centres should be offering is that you will probably see a coming together of that spend. By the same token, this is precisely not a programme that tries to specify in every detail at the national level exactly what each centre should offer. So, we should expect some variation, but also some degree of convergence.

  As far as auditing is concerned, local authorities have responsibilities to audit. We can also ensure, through our memorandum of understanding, that we know how local authorities are doing. Also, our inspection regime, through the joint area reviews, can look at the outcomes that children's centres are achieving, alongside other services for children and young people. We must get the balance right between ensuring that we know how the programme is doing and not over-regulating or trying to micro-manage a programme that is intended to be locally driven.

  Q10  Chairman: I understand that fully. I understand the devolution of power, responsibility and funding to local authorities, but my concern is that we shall not have a uniformly good standard throughout the country unless we audit. When the ring-fencing for the funding ends—as it will end—the pressures on local authorities will be such that one area will receive money for its children's centres while others will not, and there will be a postcode lottery.

  David Bell: The programme of expansion of children's centres requires each local authority to describe what it is doing and what services it will offer. In fact, in the guidance that was issued at the tail end of last year, we gave more ideas about the kind of performance management arrangements that we would expect to see at local authority level, in working with children's centres. As I indicated a few moments ago, the inspection system, which looks at the provision of children's services across an area, will look at the extent to which children's centres contribute to priorities identified by local authorities and individual centres.

  Q11  Chairman: One final point—in my experience, I have found that there is often a lack of financial awareness among those who run the centres. Will you make it a requirement of local government to ensure that it trains the people who operate these centres in understanding their financial responsibilities and duties, just as it trains school governors these days?

  David Bell: The point is fairly made in the Report that many of the people who have leadership positions in children's centres might not have had the kind of experience and training that you have described. We have developed a new style qualification through the National College for School Leadership for people who run children's centres, to provide precisely that kind of expertise. At the same time, of course, local authorities have a role in ensuring that children's centres have robust arrangements in place for management and governance.

  We are offering training opportunities at national level to ensure that the people who lead these centres are well qualified, at the same time as recognising that local authorities have a major responsibility to provide such training locally. We have also been consulting recently on the governance arrangements for children's centres, which in some ways are a rather interesting new model of organisation. I hope that we will publish some more guidance on governance arrangements in April or May this year, when that consultation is completed.

  Q12  Mr Wright: May I clarify something on page 7, which says: "Local authorities are rapidly expanding the number of centres—from 350 in September 2005 to 1,000 by September 2006"? That is a big jump in a year. Is there any particular reason September was chosen as the start date? Is there any special relevance in that?

  Sheila Scales: Only that an increasing number of centres are co-located with schools. Starting with September is probably about bringing together the opening of some centres with the new school term.

  Q13  Mr Wright: Is that a sensible approach, given that the transfer of responsibilities from the Department to local authorities took place at the end of March?

  Sheila Scales: We have been monitoring on a regular basis. We had an interim target of 800 for 1 April, which we also met. We know what the trajectory should be month by month, so that we can monitor it.

  Q14  Mr Wright: May I pick up on something that the Chairman talked about, which was governance? The Report seems fairly damning, saying people in children's centres did not find that there was enough challenge there from support groups. In terms of parental involvement in running centres, particularly in places such as my constituency, a disadvantaged area in which there might not be any skills in this respect, I find it very difficult to see where anybody in authority has provided parents with the ability to get governance skills. You mentioned rapid expansion and it says somewhere in the Report that the Department will provide governance training in early 2007. That is far too late, is it not?

  David Bell: It is important to remember that children's centres have grown out of a number of initiatives, from very small-scale programmes in some cases through to slightly larger programmes. They have also involved a variety of governance models. There were a few in the early days—of course, there are now more and more—that were co-located with primary schools, where the governance is more secure. There are also those where community groups have been working with professionals to govern and oversee what is happening. The point is well made in the Report that we need to ensure that we get more consistent standards of governance.

  I would make the point, however, that we are not just waiting until 2007 to do the training. A lot of training has happened up till now but, as the Report points out, we need to ensure that, across all the centres, there is greater awareness of what responsibilities fall to you if you are leading or managing a centre. Centre managers have a role to play, but also local authorities properly have a role to play in holding centres to account for what they are doing in a local area.

  Q15  Mr Wright: Taking another tack, away from governance, although it is linked, let us consider cost and, in particular, pages 18 and 19. Paragraph 2.3 terrified the life out of me, frankly. It states, "Most local authorities have not yet developed a firm basis for allocating funds to centres. Just over half that we interviewed... had not identified the cost of core centre services, but relied on cost information . . . Only five had done some detailed work to identify costs." Paragraph 2.8 on page 19 states that "one third of the centres had not agreed their 2006-07 budget, or been allocated their budget by the local authority" despite the fact that the visits took place in the fourth quarter of the previous year. People do not know how much the services cost, do they?

  David Bell: The first thing to say is that the Report and the field work were undertaken at an important point of transition as the local authorities took on the responsibility from March 2006 as the funding conduit, so to some extent it is fair and it understandable that they did not know all the detail of what was going on there. However, the point is made, and we would accept it, that you need to understand what the costs of different services are in a particular centre, so that you can understand whether you are getting value for money and how it compares with other services and other centres in different parts of the country. Part of the support that we and local authorities need to give to centres is to enable them to work out how well they are doing against other bodies. In fact, part of what we have issued recently is precisely about that kind of benchmarking and detail to enable centres to check their costs against others.

  Q16  Mr Wright: But from reading the Report, I do not get any sense that that is taking place at all. I refer to "Cost Effectiveness of Implementing SSLPs: An Interim Report" from February—SSLPs are Sure Start local programmes. That report states, "There is some evidence to suggest that the high resource levels available to Sure Start local programmes means that some services continue even though they are not always well used, and some resources are spent in ways that outside observers, sometimes including parents, believe are not always justified." We are just throwing money at services that are not actually tied in to need, are we not?

  David Bell: I do not think that is fair, because the Report points out at the beginning and throughout that in a number of cases parents are very positive about the kinds of services that are being offered. I think in trying to offer services in a slightly different way from what has been done previously, there may well be occasions on which you conclude that a particular service is not worth continuing, but the spirit of the Report, and what we pick up, is that parents broadly are very appreciative not just of the services being provided, but of the attempt to ensure that the services are offered in the same place. One of the criticisms traditionally has been that services are offered in all sorts of different places and parents are not able to access them in a way that suits them and is most convenient to them.

  Q17  Mr Wright: Taking the example of my constituency, which is a deprived area in the north-east of England, Sure Start has been a huge success, but even so there are surpluses of child care places and there does not seem to have been a marrying up of resources, costs and actual needs. On page 38, above paragraph 4.6, the Report states, "Centres are uncertain about how to measure their performance." From reading the Report, I think that there is a sort of vague realisation that "We intervene early and it is a long-term thing, so we do not need to be precise about performance objectives." Is that not the case?

  David Bell: No, it is not. For any expenditure, particularly expenditure of this magnitude, it is important that we get a clear idea of what we are trying to achieve. We have to help local authorities—and, through them, centres—to have at their disposal the best information to make those comparisons. Do not forget either that through the joint area review of local services, we are able to understand what improvements we are getting from the outcomes—in other words, whether children are healthier, safer and so on as a result of the programme.

  You touched on child care. The other thing to say about that is that under the Childcare Act 2006, the local authority has the role of ensuring that there is a sufficient supply of places getting the right kind of mix. You are right; in some places—you cited your own area—there is sometimes an excess of places against what is required. But part of the local authority's responsibility is to keep that under review, although not to provide all the places—in fact, it must very much ensure that private and independent providers provide places. However, it must keep that supply and demand under consideration.

  Q18  Mr Wright: My final point is aimed at pulling things together. I did not get any reassurance at all from the report on the issues of providing guidance to allow people to run the centres, having rigorous costs analysis and evaluating performance. Despite Ministers having provided a clear political steer and the resources—£2.2 billion in revenue over four years, £1.2 billion in capital—there are still hard-to-reach disadvantaged areas in my constituency that we have not reached. We have wasted a huge amount of public money, have we not?

  David Bell: Certainly not, for reasons that are highlighted in the Report about the services that previously were not offered in many places "for parental satisfaction", as it is expressed.

  Equally, you are right that some hard-to-reach groups have not yet been reached and we accept that challenge fairly and squarely. In relation to the future, we now have in place a performance management system. Guidance has gone out to local authorities and there is recognition and realisation on the part of children's centres that they have to be able to demonstrate that all the expenditure that you cited is providing the best value for money.

  Of course, we are talking about a long-term investment and the report points out that trying to measure the impact of the programmes in the short to medium term is probably not possible, as by investing in the early years, you are looking for a long-term gain and benefit.

  Q19  Mr Dunne: Mr Bell, everyone will agree with the intent behind the Sure Start programme, which is clearly meant to do a great deal of good to improve children's early starts, particularly in disadvantaged areas. The challenge for you at the centre is seeking to impose a one size fits all solution. I should like to ask you about how that works in practice.

  From reading the Report, my understanding is that there have been good and less good aspects. If my understanding is correct, you are seeking to do something extremely ambitious: according to paragraph 1.4 on page 12, you have to move from 800 children's centres in March this year, to 2,500 in only 15 months' time, to 3,500 by 2010. How are you faring with that programme? We heard that you had got to about 1,000 by September last year, but you have to more than double that in the next 15 months.

  David Bell: You are absolutely right to say that the programme is ambitious. We have a new provider to help work with local authorities to ensure that the programme is kept on track and that we get the right kind of advice on building centres and the right kind of guidance and support on how they put them together.

  To go back to your first comment about trying to direct from the centre, in a sense that is not what we are trying to do. There is a clear Government target for the number of children's centres to be achieved by 2010. There are also some high-level expectations about the kinds of services that we would expect to see in children's centres, but it is very much up to local authorities, based on the analysis that they do in their own areas, to work out exactly what the organisation of services should be. One of the virtues of the programme is that it has not attempted to try to impose a national blueprint in every area. We need to get the balance right between clear national expectations of what should be provided and lots of local discretion to ensure that that is provided in a way that best meets the needs of local areas.


 
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