The Budget is made by the Chancellor to the MPs in the House of Commons. It sets out the Governments plans for the economy – essentially, what they’re planning on spending money on. The changes set out in the Spring Budget might happen straight away, unless they have been detailed to be rolled out at later dates.
On the surface, these changes look great for parents, but looking a bit deeper in to the details of the them, there are definitely some areas of concern.
Funded 30 hours childcare from 9 months to 4 year oldsThis is a huge leap in what is currently available. (30 hours for eligible parents of 3-4 year olds). However don’t get too excited yet, these funded hours are due to be phased over a significant period of time. With 15 hours of funded childcare becoming available for 2 years olds in April 2024 and 15 hours of funded childcare becoming available for 9 month olds from September 2024. The whole 30 hours wont become available until 2025.
This is a fantastic change for many that are able to access these payments. Currently, the UC childcare payments are made in arrears, meaning parents have to first find the money before it being paid back to them the following month. An enormous barrier for getting children into childcare in the first place. Plus the uplift in amounts means the payments will cover a larger amount of the childcare for parents.
Hopefully this payment might encourage more into the profession which subsequently makes more childcare options available to parents. Childminders often offer flexibility that is not available elsewhere and a type of childcare that may be more suitable for some families.
Currently nurseries looking after 2 year olds work on ratio of 1 practitioner to 4 two years olds. The ratio is being loosened to 1 practitioner to 5 two year olds. For nurseries, this means that they can welcome more children in to their nursery without the need for additional staff. But concerns have been raised as to whether this is practical or safe.
If you are one of the parents that need school wrap around care, this will be of key interest to you. Government funding is being allocated to enable all schools to have a breakfast and afterschool club offering to parents. This is being rolled out with the hope of achieving this by 2026.
Currently nurseries are struggling with the funding provided by the government which pays for parents ‘free’ hours. The hourly amount paid by the government to the nurseries per child has just not been enough, with many nurseries having to increase the hourly rate of any hours outside the funded 30 hours and rates for 1 and 2 year old to subsidise this. Meaning nursery is still an expensive entity for parents, just for nurseries to be able to provide a provision.
The increase in this funding rate should help nurseries but whether the amount allocated by the government is enough is yet to be seen, especially due to the increase costs faced by nurseries for energy bills, food bills, minimum wage increases and business rates increasing significantly in April 2024. Initial responses from local childminders say it is not enough!
The Spring Budget 2023 shows that the government has been listening, but it is yet to be seen whether what they have done is going to be enough for the Early Years sector.
Here are Ryedale Mumbler, we feel so strongly about parents having access to good, well funded and safe childcare and we will continue to support the sector, speaking up and raising awareness where we can. We are also behind the nurseries that are continuing to struggle through while still providing the best care to our most precious babies, toddlers and pre-schoolers.
