New research- Targeting Affordable Childcare

Kelly

8 years ago

New report argues that Government should reverse its plans to double the free childcare entitlement

A report by Think Tank Localis outlines a proposal that free childcare should be expanded on a means-tested basis, families on a low income would still be able to access fifteen hours of free childcare and an additional fifteen hours for 3 and four years olds. Families with two-year-olds who are eligible would still be entitled to fifteen hours free childcare. Think Tank Localis have published a research paper called Targeting Affordable Childcare: A sustainable expansion of free childcare hours, within in this paper it argues about reversing government’s plans to double the free childcare entitlement.

The proposal; from Think Tank Localis would save the government money and help childcare providers become sustainable.

Key points from this research;

Funding arrangements for 2017/2108 will lead to a £103.5 million black hole for childcare providers
Many childcare providers will be opting out of the scheme as they can not afford to offer it
A high percentage of children from low-income families with not be eligible for the government’s scheme

The argument being put forward is to double the free entitlement for families on low income and make this a means-tested approach based on the disadvantaged criteia for two-year-olds. It would also offer 15hrs free childcare for those one and two years from low-income families as well as thirty hours free childcare for three and four years olds,

Eligibility would be based on families receiving:

Income Support
income-based Jobseeker’s
Allowance, tax credits (with an annual income of under £16,190 before tax) and Universal Credit.

This alternative model would help childcare providers, as an estimate of 24.1% of children would be eligible compared to 42.95, therefore providing scope for childcare providers to make ends meet.

Following a means-tested approach would mean that providers would receive more money for Early Years Pupil premium, instead of receiving the average £4.94, providers would be getting a much closer figure of £5.47. This would not cost government any more money than its proposed model

The proposal from Think Tank Localis would mean childcare providers can provode high quality childcare whist not having to worry about sustainability, giving them the scope to cross-subside funds.

What are peoples views on this proposal?