White Paper on Universal Credit - Work and Pensions Committee Contents


Written evidence submitted by National Childminding Association

1.  SUMMARY

1.1  Registered childminders provide flexible, high quality, inclusive childcare in a home-based setting that benefits both parents and children. The National Childminding Association (NCMA) is the only national charity and membership organisation that represents home-based childcare in England and Wales.

1.2  NCMA believes it is vital that parents are supported with the costs of childcare in order to help them back into work and to ensure every child gets the best start in life. In plans to reform the benefits system, Government should prioritise improving children's life chances in order to prevent the intergenerational cycle of poverty, particularly via the childcare element. This should be considered in conjunction with other areas of policy, and continuing to invest in improving the quality of the early years will be of paramount importance to this.

1.3  NCMA members support a change to the childcare element of the Working Tax Credit scheme so that parents are paid by vouchers that can only be accepted by registered childcarers. NCMA believes that a voucher system would prove effective alongside the Universal Credit system, and should also be available to parents not in work. This would allow the children in these families to benefit from the developmental opportunities of formal childcare, help their parents to access training, volunteering and job seeking opportunities, and prevent disruption to families where parents may work in short-term employment or varying hours each week.

1.4  NCMA would encourage Government to invest in the home-based childcare workforce to maintain current numbers of registered childminders and encourage more into the profession to meet the demand for childcare places and create further employment opportunities. Greater partnership working between childminders and other local services is equally important to develop specialist support for parents and children, particularly families with disabled children or teen parents.

2.  INTRODUCTION

2.1  NCMA welcomes the opportunity to contribute to this inquiry.

2.2  NCMA is the only national charity and membership organisation that represents home-based childcare in England and Wales, delivered by registered childminders and nannies. It has approximately 40,000 members, representing 68% of all childminders in England, and a growing nanny membership. We promote quality home-based childcare so that children, families and communities can benefit from the best in childcare and education. We support registered childminders and nannies to raise the quality of their practice and ensure key stakeholders are aware of and integrate registered childminders and nannies into national and local childcare strategies.

2.3  To achieve our vision NCMA works in partnership with:

  1. children and families, so they are aware of, and have access to, high-quality, home-based childcare, play, learning and family support;
  2. registered childminders and nannies to ensure they have the information, support and training they need to provide high-quality childcare; and
  3. Government, local authorities, regulators and other organisations in England and Wales who influence the delivery of children's services and childcare to ensure they take account of home-based childcare and the views of the profession.

2.4  Registered childminders provide flexible, high quality, inclusive childcare in a home-based setting. Childminders can tailor childcare to fit in with the needs of each child and their family. In the last year, approximately 264,000 children every week in England benefitted from the consistent care of a childminder in a small, family-focussed environment.[129] Overall childminders represent 61% of all childcare settings, providing just over a fifth of all childcare places.[130]

2.5  Registered childminders help to improve children's life chances by contributing to their social and emotional development through the provision of high quality childcare and early learning. This provision can also help to prevent the intergenerational cycle of disadvantage and underachievement by helping parents to take up work or further education opportunities.

2.6  Registered childminders support parents returning to work or study by providing flexible, affordable childcare at a time to suit the families, especially those working atypical hours or in shift patterns. This is invaluable, particularly in areas of deprivation, where childminders can support parents returning to work or study. The Department for Education's Childcare and Early Years Providers Survey 2009 shows that almost a fifth of childminders operate in the 30% most deprived areas in England, with 17% of all childminding places offered in these areas.

2.7  Childminding also represents a clear career option for those returning to employment. At present there are approximately 56,710 childminders in England, although numbers are declining. It is vital that local authorities support the recruitment and retention of childminders to ensure families in their area can access the benefits childminders provide for children and parents, and also to help childminders to remain in employment and provide those without work a further potential career option. NCMA has experience working with local authorities, such as Cambridgeshire County Council, to organise childminder recruitment campaigns in identified areas of need and support all new childminders through the registration process, including the delivery of induction courses.

3.  FURTHER INFORMATION

NCMA welcomes the Government's move to develop a system that will make it easier for families to access support, including assistance with childcare. It is vital that all families can access the help they need, particularly childcare opportunities, to ensure their children get the best start in life. The most recent figures from HMRC, published in 2008, suggested that 366,300 families in England were in receipt of the childcare element of the working tax credit. This is nearly one in eight of all families using some form of formal childcare in England. According to the Daycare Trust, the average claimed for the childcare element of Working Tax Credit in England is now £69.76.[131]

NCMA supports the overall administration of the new benefit being managed by one Government department. This will provide a clear contact point for both families and childcare providers.

NCMA believes that support for childcare costs should be provided alongside the Universal Credit, rather than through it. This would not replace an earnings disregard, such as the current childcare voucher programme.

NCMA believes that all parents receiving the Universal Credit should be entitled to support for childcare costs, regardless of whether they are in work. This recognises the importance of assisting parents who are actively seeking work who may need to attend interviews, Job Centre or recruitment agency appointments, as well as the more administrative side of job seeking such as writing applications and job hunting online. It would also take into consideration parents who may take up volunteering and education opportunities as their first step back towards employment. Preventing disruption for families would also be another key benefit in cases where parents are employed for short-term periods but may experience periods of unemployment in between, or may need to work varying hours in their jobs from week to week. It could also help with up-front childcare costs when parents move into work, which could include a deposit to secure a child's place with a childminder, and in some instances paying a month's fees in advance.[132] For many parents settling their children into childcare where they are happy may be the important first step to ensure they are comfortable returning to work.

Most vital of all, however, is that this approach would ensure that children in poverty whose parents are not working could experience the same benefits of formal early years education and care as those whose parents are in employment. Research has shown that in disadvantaged families where the mother has a low level of education, a child's participation in formal childcare is associated with significantly better cognitive outcomes at age 6 and 7 relative to children who have only attended informal childcare settings.[133] At present, many low income families tend to favour informal childcare,[134] and the lack of funding may contribute to this.

NCMA is of course aware of the Government's free entitlement to 15 hours of free early years education and care for three and four-year-olds and the most disadvantaged two-year-olds. However, this entitlement does not cover the full amount of time that parents may need for job hunting, training or volunteering opportunities.

NCMA would encourage the Government to offer 100% of childcare costs for those accessing the Universal Credit who wish to take this up. For those in work, this would help to provide an incentive to further their career and economic opportunities by not penalising them for taking on additional hours or responsibilities. For those not in work, providing 100% of costs would be absolutely vital in making it feasible for parents to access formal childcare for their children, and to ensure they receive the best developmental opportunities.

4.  A SEPARATE VOUCHER SYSTEM TO PROVIDE SUPPORT FOR CHILDCARE

The Universal Credit White Paper opens a discussion about the form that support for parents with childcare costs could take. NCMA supports the proposal to separate childcare from the Universal Credit by establishing a voucher system to provide support for childcare, which would be available to all those accessing the Universal Credit.

There has been substantial debate amongst childcare providers and with organisations such as NCMA about the administration of the childcare element of Working Tax Credit. This has been fuelled by reports of incidents of, for example, childminders promising a place to a parent, who then includes the childminder's details in their application for the childcare element but does not send their child to the childminder. The provider loses out on anticipated revenue and has to go through the process of filling the place for a second time.

To avoid such abuses of the system, NCMA's members support the childcare element being provided in a different form, such as a voucher, that can only be accepted by registered childcarers.

NCMA members believe this would be a significant step to crackdown on error and fraud in the benefits. HMRC recently reported that 4.5% of all tax credit awards in 2008-09 had errors relating to childcare with a potential loss to the Exchequer of £380 million.[135]

NCMA would support a system that is paid promptly. With the focus of the new Universal Credit being online, NCMA would urge caution in providing exclusive access to the proposed childcare voucher system online. Whilst 77% of NCMA members report using the internet several times per week, 8% of NCMA never use the internet.[136]

Furthermore, NCMA would not support a system where the payment is made directly to the childcare provider if this meant the childcare provider was responsible for updating the Government on changes in the family's personal circumstance.

5.  GREATER PARTNERSHIP WORKING WITH CHILDCARE ORGANISATIONS TO HELP PARENTS BACK INTO WORK

NCMA would like to see more partnership work between childminders and local stakeholders to help parents in returning to work, including engagement between childminders and children's centres, which should be encouraged by local authorities. It is also vital that bodies such as Jobcentre Plus have a broader understanding of the role childminders can play in supporting families back to work—especially acting as a mentor and offering support to young parents. A system of matching demand for childminders and opportunities to train for this could also help more people to take up employment opportunities whilst ensuring there is sufficient childcare available in the area.

Furthermore, NCMA would support the introduction of more childminding networks. Government support for childcare is often vital in enabling parents to take up work. However, more must be done to ensure parents can access this support and have a full choice of childcare options. At present, families can only access the Government's entitlement to 15 hours of free childcare through childminders if the local authority provides an accredited childminding network. It is important that Government enables families to choose the form of childcare that best suits their needs by ensuring all local authorities provide these networks. This would enable more childminders to be accredited to deliver Early Years Education.

NCMA has successfully worked with local employers to establish childminding networks to offer and promote childcare that will meet the specific needs of their employees. One notable example of this is the Avon and Somerset Constabulary childminding network, which links police officers and support staff with childminders. In the East of England NCMA has worked with Anglia Support Partnership (ASP), which provides support services to NHS organisations in the region. As part of this, NCMA has assisted with the development of a vacancy service to match parents and children with quality assured childminders in the local area.

Childminding networks also play an important role in driving up quality, with 15% of childminders who are members of a childminding network being graded outstanding by Ofsted, compared to 6% who are not on a network. This in turns helps to ensure children have access to better development opportunities. It is through childminding networks that registered childminders are able to access additional training and support, and participate in specialist programmes that meet the particular needs of families with additional requirements and groups such as teenage parents.

Supporting parents of disabled children/children with special educational needs (SEN)

In research undertaken on behalf of NCMA, more than nine in 10 parents of disabled children/children with SEN reported difficulties in finding childcare that was accessible to their child and could provide the right kind of care to meet their needs.[137] Significant barriers included difficulties obtaining information about available childcare and meeting the cost of childcare provision, particularly where providers—which included early years group settings and after-school care—charged higher fees to cover the additional costs of caring for a disabled child.[138] Parents who struggled to find suitable childcare regretted not only the income they lost from not working, but also the lack of financial and social independence for themselves and the loss of social opportunities for their children.

The lower use of childcare by parents of disabled children is highlighted in the Childcare and Early Years Survey of Parents 2009: in total, 38% of disabled/children with SEN aged under-14 were receiving some form of formal childcare (including before- and after-school clubs), compared with 43% of children who were not disabled or had no special educational needs.[139] Difficulties with securing appropriate childcare create problems for parents of disabled children accessing employment and this increases the risk of poverty. Only 16% of mothers of disabled children are in paid employment, compared with 61% of all mothers.[140] Research from the Department for Work and Pensions demonstrates that rates of child poverty are higher in families where a child is disabled. 56% of children in families with one or more disabled children, and no disabled adult, are in the bottom two quintiles of the income distribution, compared with 44% of children in families with no disabled children or adults.[141]

NCMA would welcome greater investment to support families with disabled children and those with additional requirements to help their parents take up employment opportunities, as well as ensuring their children benefit from the associated development benefits. Childminders can help disabled children and those with additional requirements to get ready for school through the provision of high quality early years education and care. The smaller nature of their settings enables them to give these children more one-to-one attention and adapt to their needs, as well as ensuring they are supported alongside other children. More than a third of childminders are currently trained to provide support for disabled children and those with additional needs.

Supporting teenage parents

Juggling the challenges of parenting, childcare and returning to school or college is daunting for many young parents. NCMA manages a number of teen parent projects across the country to help young parents back into education and training with the support of a registered childminder. Young parents come into the scheme via Connexions, children's centres, Family Information Services, or by making contact directly.

A successful teen parent project in Lincolnshire is helping support young parents to return to school and education through the provision of childminder childcare. The project is delivered by NCMA in partnership with Tackling Teenage Pregnancy (TTP). This project supports teenage parents in finding a registered childminder by offering home visits to discuss childcare needs and options, accompanied visits to up to three childminders locally that match the needs of the parent concerned, and continued support once the care is in place.

It is vital that local authorities provide support for these projects and that Job Centres link with them effectively to ensure both parents and children can benefit from them.

Ensuring a strong childcare sector is available to help parents take up work

The Government has stated its commitment to ensuring that parents continue to receive financial support with the costs of childcare, as this is crucial if they are to have an incentive to work. It is vital that there is a vibrant childcare sector to meet the increased demand for places following the changes to requirements for Sure Start Children's Centres to offer full day care, and the introduction of Government policy to move lone parents who are capable of work and whose youngest child is seven or older onto Jobseeker's Allowance. This is an interim measure before the Government extends the scheme further to lone parents with children of school age.

To maintain current numbers and encourage more into the profession, registered childminders need to be supported to remain sustainable businesses. The majority of childminders are individuals who have set up their own businesses. In order to provide a high quality, successful childminding setting, it is important that providers are given support and advice on running a sustainable business, particularly in the current economic climate, through initiatives such as the Ofsted registration fee subsidy and sufficiency assessment by local authorities. Research illustrates the working environment for childminders - nearly half (46%) of NCMA's members have a turnover of less than £10,000 per annum, with 30% of the total membership turning over less than £7,000 per annum. Coupled with this low income are long hours, often working as a sole provider - on average, childminders work 37.5 hours per week, with 55% working for more than 40 hours per week. With such a low income, even minor changes to the childcare or local business environment can have a major impact on their ability to remain sustainable.

As well as ensuring a sufficient number of childcare places are readily available, it is important all families have a chance to access the highest quality childcare and early learning experiences. NCMA would urge the Government to ensure that funding is allocated to support childminders to access professional development pathways, as research shows the higher qualified the practitioner, the higher quality the experience for the child. In turn, this results in children being better prepared for school and achieving higher attainment levels. NCMA believes that all registered childminders should be qualified to level 3 or above because recent research shows that NCMA registered childminder members holding a level 3 or above qualification were significantly more likely to be graded outstanding at their Ofsted inspection than those with a lower level qualification. At present 51% of childminders do not have a level 3 qualification.

In addition, there is the need for continued investment and support for childminders to undertake the new Level 3 Diploma for the Children's and Young People's Workforce (the qualification level for those working unsupervised with children). Any training must be available in a format that is accessible to all, including evening and weekend sessions and e-learning. This investment and support is also vital to ensure they are able to join quality improvement childminding network and, if they wish, then to become accredited to deliver the free entitlement.

6.  RECOMMENDATIONS FOR ACTION

NCMA makes the following recommendations to the Select Committee for consideration:

  1. support for childcare costs should be provided alongside the Universal Credit, rather than through it, and should be available to parents regardless of their current employment status;
  2. Government should offer 100% of childcare costs for families who are accessing the Universal Credit;
  3. the benefit should take the form of a voucher that can only be accepted by registered childcarers;
  4. the childcare provider should not be responsible for updating the Government on changes in the family's personal circumstance; and
  5. the development of the Universal Credit should be considered in conjunction with other areas of policy development including supporting childminding businesses to remain sustainable, the development of childminding networks in every local authority and access to continued professional development for the home based childcare workforce.

December 2010



129   Smith et al (2010). Childcare and Early Years Survey of Parents 2009. DfE Research Report. RR-054. London:DfE. Back

130   Ofsted (2010). Registered Childcare Places in England 2008 onwards. London: Ofsted. Back

131   Daycare Trust (2010). London Childcare Facts and Figures: Briefing Sheet 3. London: Daycare Trust. Back

132   Bartholemeou et al (2009) Childcare Advance: scoping the need for help with up-front. London: Daycare Trust. Back

133  Geoffroy et al (2010). "Closing the gap in academic readiness and achievement: the role of early childcare." Journal of Child Psychology and Psychiatry, 51 (12): 1359-1367. Back

134  Speight, S, Smith, R With Coshall, C (2010) Towards universal early year's provision: analysis of take-up by disadvantaged families from recent annual childcare surveys. DfE Research Report. RR-066. London:DfE. Back

135   HMRC News Release (30 November 2010) Tax credits claimants reminded to report changes in childcare
http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=257&NewsAreaId=2&ReleaseID=416832&SubjectId=36 
Back

136   Qa Research (2010). NCMA Annual Membership Survey. Bromley: NCMA. Back

137   Melyn Consulting (2009). Childcare for Disabled Children and Young People. Bromley and Cardiff: NCMA. Back

138   Melyn Consulting (2009). Back

139   Smith et al (2010). Back

140   Equality and Human Rights Commission (2010). How fair is Britain? Available at:
http://www.equalityhumanrights.com/uploaded_files/triennial_review/how_fair_is_britain_-_complete_report.pdf 
Back

141   Department for Work and Pensions (2010). Households Below Average Income 2008-2009
[online] Available at: http://campaigns.dwp.gov.uk/asd/hbai/hbai_2009. 
Back


 
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