Funded Places Take-up Drops

Since their introduction and particularly since the roll-out of the 30 hours entitlement, government funded provision has become the backbone of the early years sector. While sector is at constant pains to point out that the funding often falls short of what is necessary, it is nonetheless the case that the majority of regulated childcare businesses now rely on it to survive. Not only that, but funded places, particularly means-tested funding for 2-year-olds, have enabled more children than ever before to benefit from early education.

The pandemic has now introduced a lot of uncertainty into this picture. Figures released by the government suggest that registrations for funded places are at their lowest rate since 2008. 62% of eligible 2-year-olds were registered for a place in January, a decline from 69% in 2020. Similarly, registrations of 3 and 4 year olds have dropped by 5%. Accompanying this is anecdotal evidence from sector voices that the number of children attending privately paid provision has also dropped.

Occupancy rates have been slowly recovering since settings were permitted to re-open after the first lockdown last year, but the uncertainty introduced by the second wave and the delays to relinquishing the last Covid restrictions may mean some parents are delaying registration. At present, with furlough still an option for unneeded staff, most settings seem to be able to continue in operation, but it will be important that numbers have recovered by September when the scheme ends.

Ofsted’s report can be found here: https://explore-education-statistics.service.gov.uk/find-statistics/education-provision-children-under-5/2021