Press Release - Early Years: Progress in Developing High
Quality Childcare and Early Education Accessible to All
27 February 2004
Nearly 100,000 new childcare places have been created for
pre-school children since 1998 and the Government is on course to
meet its targets for the provision of free part-time early
education for three- and four-year-olds. But Sir John Bourn, head
of the National Audit Office, reported today that more needs to be
done to ensure that much of this new provision is sustainable. And,
while considerable progress has been made in closing the gap in
relative levels of provision between the poorest areas and others,
there is still some way to go.
Early childhood is a crucial period in human development. High
quality care and education has wide-ranging impacts, especially for
disadvantaged groups, while poor quality childcare can have a
negative impact. The National Audit Office examined the
developments in childcare and education provision for children
below compulsory school age since the National Childcare Strategy
was introduced in 1998. In particular, they looked at progress in
improving accessibility (including in providing free part time
early education places for all three and four year olds, creating
sustainable new childcare places, and increasing the level of
provision for disadvantaged groups); in making provision more
affordable for parents; and in ensuring that it is of high
quality.
Since the launch of the National Childcare
Strategy:
- 626,000 new childcare places have been created in England, but
301,000 places have closed.
- Most new places have been in out of school and holiday
provision, but 96,000 are for pre-school children.
- There have been net losses of some types of provision, and
there is a lot of regional and local variation. For instance the
number of pre-school childcare places varies between 11 and 58 per
100 pre-school children.
- There are sufficient early education places to give a free
part-time place to all four-year-olds whose parents want one. Many
areas across England now have sufficient places for all
three-year-olds and the Government have brought forward the date
for full coverage of three-year-olds to April 2004.
- The childcare element of the Working Families Tax Credit and
subsequently Working Tax Credit has been introduced and is now
being claimed by 236,000 families.
Government funding has been an important factor in starting up
provision, but this new provision is under threat. Only half of new
providers know what they will do when their start-up funding ends,
and there are a range of threats to sustainability. Many existing
providers fail to cover their costs, and significant numbers lack
sufficient understanding of costs to judge their viability. Few
early years providers are planning to expand. Lack of capacity and
a need for bigger premises are the main barriers to expansion.
In our surveys, few parents said lack of available provision
prevented them using childcare, but around one in seven said there
was no local choice for their child. There is insufficient
flexibility to meet the needs of some, especially lone parents.
Less early years provision is available in deprived areas than in
other areas, although the gap is narrowing. Few providers,
especially childminders, are able to cater for disabled children
and many are not trained to do so.
The provision of free nursery education places and the childcare
element of the Working Tax Credit have reduced the cost of early
years provision to parents eligible for them. But for others, the
costs of childcare are increasing. However, parents told us that
other factors such as location, the quality of staff and facilities
and availability at suitable hours were more important than cost in
deciding whether they use early years provision or what type of
provision they choose.
The Department has put in place a detailed framework of measures
to improve the quality of childcare, National standards have been
set for childcare provision, and Ofsted inspect childcare providers
every two years. Providers have received the introduction of
inspections positively, and the first inspections indicate that
standards across the sector are acceptable.
Increasing the number of skilled and qualified childcare workers
is a key aspect of improving the quality of early years provision.
Lack of trained staff is a barrier to expansion, and the Department
face a challenge in increasing the size and skills of the workforce
in line with their targets for creating additional places. They
have a strategy in place, but estimate that 175,000 new recruits
will be needed between 2003 and 2006.
The National Audit Office report recommends that the
Department should:
- expand provision where it is needed by focusing more on
developing integrated provision and ensuring it is
sustainable;
- provide more training and business support for childminders,
and promote the development of childminder networks;
- ensure that schools play a key role in expanding provision in
deprived areas; and develop better measures of progress;
- improve sustainability by ensuring that providers have access
to assistance in understanding their costs and planning for the
future; and give local authorities greater co-ordination and
planning powers; and
- ensure quality provision by doing more to expand the workforce,
for instance by attracting more older workers, and provide
training, especially in caring for disabled children and those with
special educational needs.
Sir John Bourn said today:
"The Government has made impressive progress in creating
new childcare places and in providing early education for
pre-school children since 1998, but not enough of these new places
are yet in deprived areas where they would most benefit children
and parents. The Government's investment will be wasted if the new
provision is not viable. More training is needed, especially for
childminders, and providers need more support to help them manage
their businesses."
Notes for Editors
- The NAO's report examines childcare and early education
provision for children below compulsory school age in England.
Childcare (care in a registered setting such as a, nursery or with
a childminder) can cover children up to 14. Early education (in a
classroom or nursery setting or through accredited childminder
networks) is provided for children under compulsory school
age.
- The Government spent £3.6 billion on these services in 2002-03,
mainly through local government funding for early education and
initiatives to improve the availability of childcare, but also
through the Department for Education and Skills, which spent £680
million. In addition, parents pay a further £3 billion annually
towards childcare costs. Services, catering for children of
different ages, are offered by a variety of providers in the
public, private and voluntary sectors.
- The National Audit Office surveyed more than 700 early years
providers, asked 900 parents of 0-4 year-olds about their
experience of early years services, and commissioned a review of
the literature on the impact of early years provision on young
children. The reports on these pieces of research are available on
the internet at www.nao.gov.uk/publications.
- Press notices and reports are available from the date of
publication on the NAO website,
which is now at www.nao.org.uk. Hard copies can be obtained from
The Stationery Office
on 0845 702 3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 800 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 14/04
All enquiries to Barry Lester, NAO Press Office:
Tel: 020 7798 7937
Mobile: 07748 181692