Place shortages threaten free childcare policy

A growing shortage of free childcare places for three and four-year olds in England threatens to undermine government plans to double provision next year.

Working parents will be entitled to 30 hours free childcare a week from September 2017, but about 41,000 children are missing out on the current quota of 15 hours because of a lack of places, according to the Family and Childcare Trust.

According to research published by the charity, 30 per cent of English local authorities have too few free places — almost three times the figure a year ago.

“Extra free childcare is of no use to working parents if they can’t find a place for their child,” said Julia Margo, the charity’s chief executive.

The extra support from 2017 — which also includes a subsidy for childcare spending for under-12s — will not be available to all working parents.

Families where one parent does not work, or works less than the equivalent of 16 hours a week, will not qualify for either tax-free childcare for under-12s or the extra hours of free care for younger children. Neither will households where one parent earns £100,000 or more.

Overall, only 45 per cent of local authorities in England reported to the Family and Childcare Trust this year that they have enough childcare for working parents.

The charity’s annual survey also revealed a steep fall in the number of local authorities with enough after-school childcare for five-to-11 year olds. This year, only 9 per cent reported having enough capacity — down from 28 per cent in 2011.

Neil Leitch, chief executive of the Pre-school Learning Alliance, which represents childcare providers, said it was “extremely concerning” that local councils are struggling to provide enough funded places. The shortage will become more acute with the advent of the 30 hour scheme, he said.

Currently, providers barely cover the costs of delivering the statutory 15 hours a week, but additional hours purchased by parents can make up the difference. With the doubling of free care, the industry worries this cross-subsidy will cease.

“Many providers have warned that they simply will not be able to deliver the extended scheme, not only because of a lack of funding, but also a lack of places,” said Mr Leitch. “While we welcome the recent promise of increased investment in the sector, the problem of insufficient capacity is one that the government simply cannot continue to dismiss.”

Sam Gyimah, education and childcare minister, said the latest figures show 7,000 more providers are offering 15 hours of free care, with 1.3m children benefiting.

“Thanks to record investment by this government — £6bn a year by 2020 — and with our plan to double free childcare for working parents, we expect take-up to rise.”

After seven years of above-inflation increases in the costs of childcare, the Family and Childcare Trust survey found average prices have stayed the same over the past year.

The average UK cost of a nursery place for 25 hours a week for a two-year old is £112. In London, the figure is £149, the research found.

Eight councils in England will double their free childcare one year early, in a pilot scheme that starts this September.

The test councils are Hertfordshire, Northumberland, Portsmouth, Staffordshire, Swindon, Wigan, York and the London borough of Newham.