Different national approaches to post-covid childcare landscape

Last October, the Petitions Committee produced a report looking into the impact of Covid 19 on new parents in which they recommended that the government commission an independent review the funding and affordability of childcare in England. The government has now considered its response and decided not to do so at this time. Instead they refer to ongoing efforts to explore what more can be done to secure parents access to childcare and to the existing range of options available to parents such as the right to request flexible working.

The committee has expressed its disappointment at the government’s response, echoed by sector voices who have pointed out that the childcare sector still struggles to receive adequate funding. While providers do all they can to ensure parents can take up their services, expenses are increasing with inflation and these will inevitably be reflected in the fees settings must charge. This contributes to rising concerns nationwide around the cost of living.

Rising costs have been acknowledged by the Welsh Government who have announced that it will be committing an additional £6 million per year to its Childcare Offer, raising the hourly rate from £4.50 to £5 from April. It will also be investing a further £3.5 million in its Flying Start scheme, targeting disadvantaged 2 and 4 year-olds. This approach has been welcomed by the sector, though it has been pointed out in some quarters that if inflation continues, even this rise may lead to providers still facing challenges to place themselves on a sustainable financial footing.

Meanwhile in Scotland, over 200 nurseries have written to the government, demanding action over an increasing staffing crisis. Unlike in England and Wales, Scotland’s childcare provision is dominated by maintained settings and private providers have long argued that the funding they receive is inadequate by comparison. In some cases, this has resulted in cutting staff salaries and hours, leading to the risk of a mass personnel exodus to the maintained sector. So far the government has not indicated it is likely to change its position and so the private nurseries’ campaign is likely to continue.