The government plans to introduce a single national funding formula for the early years, to tackle the uneven funding around the country. Early years education is under threat from a national funding formula, argue the MPs Tulip Siddiq and Jack Dromey. 

Many feel that the government’s plan to introduce a single national funding formula for the early years is creating a unsustainable situation in the sector. Ministers claim it will introduce a fairer and more transparent system across the country, however the truth is that it will see many providers losing out. They will lose the ability to receive a top-up supplement from their local authority and will be left short of the funds needed to meet running costs. 

Since 2009, more than 15,000 early years settings have closed and there has been a loss of over 45,000 childcare places. In a recent government consultation on free childcare, it was found that more than half of the nurseries responding were clearly desperately short of funding. A quarter of nurseries claimed that they don’t even receive enough money from the government to cover their basic costs.

Every part of the country will see cuts, however it is the most disadvantaged communities which will lose out the most. Areas such as Liverpool, Hackney and Kingston-Upon-Hull face particularly damaging cuts.

Maintained nursery schools are likely to be hit the hardest. They employ more specialist staff, offer more support for families and are more likely to be rated Outstanding by Ofsted; however they are usually located in disadvantaged areas.

The situation is made worse by the government issuing an increase to the amount of free childcare on offer, rising from 15 to 30 hours per week. The funding formula and the lack of supplementary funding for nurseries represents a double hit, with many such providers claiming they simply cannot cope.

Our early years education system provides invaluable support to families across the country. Teachers should be solely focused on nurturing young children, not constantly looking over their shoulder in fear that the next government announcement will drive them out of business.