1 Introduction
1. In its ten-year strategy for childcare, published
in 2004, the Government spoke of its vision of a system in which
childcare was available to all families and was flexible to meet
their circumstances; in which the quality of childcare services
was among the best in the world; and in which all families could
afford high quality childcare services that were appropriate for
their needs.[1] One of
the routes by which the Government has sought to achieve these
aims is the introduction of an entitlement to a level of free
early education and care for three and four year olds.
2. The Government regards local authorities as being
instrumental in developing the availability, flexibility and quality
of early years education and care. £4 billion is spent by
local authorities each year on children under five.[2]
The Childcare Act 2006 placed new duties upon local authorities
to reduce inequalities between young children, secure provision
of free childcare under the entitlement, assess childcare provision
in their areas, and ensure that there is enough childcare locally
to enable parents to work (or to enable them to undertake training
which could be expected to lead to work).[3]
'Childcare' in this context includes education for children below
compulsory school age.
3. In March 2007, in a consultation paper on the
reform of school funding, the Government put forward proposals
designed to bring the funding systems for different sectors of
early years provision "into closer alignment to enable local
authorities to shape the market in response to parental demand".[4]
One of the outcomes was a decision to introduce an Early Years
Single Funding Formula"a standardised, transparent method
for setting the basic unit of funding per pupil",[5]
to be adapted and applied by each individual local authority to
fund the entitlement to free early years education and care at
early years settings.[6]
The date by which each local authority in England was to introduce
its funding formula was to be April 2010.
4. In the summer of 2009, we became aware of alarm
among providers of early years education and care about possible
consequences of both an imminent extension of the entitlement
to free early education and care and the proposed new single funding
formulae being developed by local authorities. We therefore held
a short inquiry, taking oral evidence from providers and their
representative bodies, local authorities, and the Minister for
Children, Young People and Families. We also invited written evidence
and were struck by the amount received despite the four-week deadline
for submission. Almost all evidence specially prepared for the
Committee has been placed on the Parliamentary website.[7]
We are grateful to Dame Gillian Pugh and to Professor Christine
Pascal for their specialist advice.[8]
1 Choice for parents, the best start for children:
a ten year strategy for childcare, HM Treasury, December 2004,
paragraph 1.10 Back
2
Draft Code of Practice on Provision of the Free Early Education
Entitlement for 3 and 4 year olds, DCSF, September 2009, paragraph
1.1 Back
3
Childcare Act 2006, sections 1, 6, 7 and 11 Back
4
School, early years and 14-16 funding consultation, DCSF, March
2007, introduction to Chapter 5 Back
5
HC Deb, 25 June 2007, col. 1WS Back
6
"Setting" is a generic word for any institution (such
as a school, playgroup, nursery or accredited childminder network)
where early years education and care is provided. Back
7
www.parliament.uk Back
8
Dame Gillian Pugh declared interests as Chair of the National
Children's Bureau, Board member of the Training and Development
Agency for Schools, Adviser to various sections of the Department
for Children, Schools and Families, member of the Children's Workforce
Development Council, visiting professor at the Institute of Education,
President of the National Childminding Association, and member
of the DCSF/LGA Narrowing the Gap project. Professor Christine
Pascal declared interests as Director of the Centre for Research
in Early Childhood and Director of Amber Publications and Training Back
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