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Government keeps the early years sector guessing on childcare reforms

Early years organisations and campaigners have urged the new Prime Minister Rishi Sunak to scrap plans to change staff-to-child ratios, and axe the deregulation agenda pursued by the previous PM Liz Truss.
Recent turmoil in the Conservative government has put childcare plans on hold PHOTO Adobe Stock
Recent turmoil in the Conservative government has put childcare plans on hold PHOTO Adobe Stock
  • Policy speculation driving uncertainty in the early years sector
  • No response yet to childcare ratios consultation


Uncertainty over the embattled Conservative Government’s proposed changes to regulations around ratios and plans for funding in recent weeks has left the sector reeling.

While the consultation on proposals to change staff-to-child ratios in childcare settings was carried out under Boris Johnson's government, it is well-known it was under previous PM Liz Truss, as early years minister nine years ago, that the plan to cut rules on the number of staff caring for children in early years settings was first put forward.

It has proved perennially unpopular, overwhelmingly opposed within the early years sector and among parents.

This time around is no different – with more than 100,000 signatures to the Parliamentary petition opposing changes, which would see the number of two-year-olds per staff cared for in settings increase from 1:4 to 1:5.

Meanwhile, an article in The Times (7 October) suggested that rather than ‘tweak’ ratios, Truss was looking at getting rid of the regulatory requirement completely, leaving it up to early years settings to decide how many staff they need.

Early years organisations have warned such a move could have ‘dire circumstances’ and have urged the Government to further consult with the sector.

Kelly Tolhurst, appointed as early years minister under Truss, is said to understand concerns about such speculation, and Nursery World has learned a government response to the ratio consultation findings is expected to be published.

However, all of this was prior to Sunak becoming Conservative leader on Monday and his subsequent appointment as PM yesterday.

Sunak yesterday (Tuesday) appointed Gillian Keegan as the new education secretary.

As yet (Wednesday afternoon), no other changes have taken place to the ministerial line-up at the Department for Education.

Other leaked ideas in recent weeks, include providing parents with a ‘£2,000 cash voucher’ to spend on formal and informal childcare, scrapping the 15-hour entitlement, and allowing childminders to register solely with agencies, rather than through individual registration with Ofsted.

Speaking to Nursery World recently – just before Truss's resignation as PM – Emeritus Professor Peter Moss, of the Thomas Coram Research Unit at UCL Institute of Education, referred to the Government proposals and leaks on childcare policy as ‘rearranging the deckchairs on the Titanic’.

He said, ‘I understand why the Cambridge Dictionary says it refers to “wasting time dealing with things that are not important… ignoring a much more serious problem.” And in fairness, it’s not just this Government, but all governments since 1997 who’ve rearranged the deckchairs, while ignoring the serious problems besetting the English early childhood system. The result has been more of the same, endless tweaking rather than transforming the system.’

He told Nursery World, ‘England needs to move beyond “childcare”, beyond “nurseries”, beyond marketisation and private provision, beyond a low-quality employment model, beyond a cut-price parenting leave system. It needs to move towards a fully integrated public system of early childhood education. The tragedy is that had we spent some time 25 years ago thinking long and hard about what we had and needed, we could have had a system to be proud of by now. Perhaps it’s not too late to start thinking – but only if we’re not taken up with rearranging those deckchairs.’

Impact on the childcare market

Courteney Donaldson, managing director of Childcare & Education at Christie & Co, told Nursery World she feared such speculation would only lead to more closures.

‘In the wake of Covid-19 and the workforce crisis, and now with rumours of deregulation of the sector, for some early years providers, their resilience has broken, as evidenced by the increases in closures and loss of capacity.

‘I fear if we continue in the vein of policy changes as being mooted, then the volume of closures that we have seen this far will be the very short end of the wedge.

‘This is particularly disturbing when we compare this with other countries where governments have recognised the importance of high-quality early years and so have intervened with extensive early years education fiscal support policies and funding.’

She added, ‘Children, parents, early years providers, local communities and indeed our nation as a whole do not benefit from rumours and uncertainty.’

Impact on health and safety

The Royal Society for the Prevention of Accidents (RoSPA) opposes reducing the minimum supervision ratio. It is ‘concerned’ that if childcare ratios are axed, ‘less scrupulous providers may decide to prioritise profit or easy management practices over the safety of young children, which is not acceptable.

‘Many parents returning to the workforce face the difficult task of finding suitable early years provision, which offers a safe, healthy environment for their children to learn and develop,’ said RoSPA’s public health adviser, Ashley Martin. ‘When deciding on an early years provider, the minimum ratio of trained staff is a clear benchmark for parents to understand that their child will receive that care and supervision.

‘Children are our greatest asset, and their safety is paramount. Supervision is a key element when it comes to preventing accidents among under-fives. The role of early years practitioners, teachers and support staff in education is difficult enough with significant practical and legal responsibilities.

‘It would be difficult for parents to be confident that supervision levels are maintained throughout the nursery if providers can pick and choose when, where and how supervision is.’

Impact on child development

Early years consultant, trainer and writer Helen Moylett warned that if children’s personal, social and emotional (PSE) development is ‘neglected’ due to not enough well-qualified staff to form proper attachments, ‘we limit life-chances and store-up problems for the future’.

Considering the impact of deregulation on children’s PSE, Moylett said, ‘I am shocked, but sadly unsurprised, by what appears to be the Government’s complete disregard for the rights of young children in this policy direction.

‘While Government sees children as mere appendages of their parents to be cared for so those parents can work, children will get a bad deal and have their life chances severely limited.’

She added, ‘Since Covid, babies and young children have needed more support in the prime areas than ever.’

Sector feedback

The National Day Nurseries Association (NDNA) urged the Government to carefully consider the concerns of the sector and any serious implications for children and their families, before making any ‘rash decisions’.

Chief executive Purnima Tanuku said, ‘We have seen a lot of speculation and commentary in the media about scrapping childcare ratios and also funding for “free” places and how this could be distributed differently.

‘We are waiting to see the Government’s response to their consultation about ratios in nurseries.

‘NDNA has been calling for a comprehensive review of childcare policy and funding, which is what the Government should be seriously looking at. But any decision involving PVI nurseries, which deliver the majority of childcare and early education hours in England, must be made in full consultation and with their full support.’

Neil Leitch, CEO of the Early Years Alliance, said, ‘Proposed ratio changes have previously been falsely sold as a way to save parents money without the Government needing to spend any money themselves. But, if the new Chancellor is serious about dealing in facts not fiction, any plans to relax ratios must be abandoned.

‘Given the ongoing political turmoil, ministers may now think more carefully about putting forward unpopular proposals. As such, given that both parents and providers are strongly against ratio changes, ministers may think twice before going ahead with them.

‘But this doesn’t take away from the fact the ratio proposals, as well as rumoured policies, will be disastrous for the sector. They will do absolutely nothing to lower costs for parents and will heap unnecessary pressure on a sector that is already teetering on the edge.

‘We know – and the Government knows – that the only way to address the raft of challenges facing the sector, including soaring costs, a severe recruitment and retention crisis, and the plummeting number of childminders, is to properly fund the sector in the long term, but once again the Government is wasting its time on policies that will only create more issues rather than solve them.’

Cost-of-living crisis

Schools and sector organisations have asked for reassurance there will be more help for them, following new Chancellor Jeremy Hunt’s decision to scale back the energy support scheme.

The energy price guarantee will be scaled back from two years to six months. Instead, there will be a Treasury-led review of how to support people and businesses with energy bills from April.

Hunt has scrapped almost all of the policies announced by Kwasi Kwarteng in the mini-budget just a few weeks ago, including axing the cut to the basic rate of income tax from 20p to 19p.

He also said all government departments would ‘need to redouble their efforts to find savings’ and spending would be cut in some areas.

The NDNA has been calling on the Government to make sure that nursery businesses are classed as vulnerable.

Chief executive Purnima Tanuku said, ‘This is because they are very susceptible to high rises in energy, food and other resources. Childcare businesses cannot just put up their fees to parents, because they are also struggling with their bills. If nurseries face a cliff edge next April, many more may be forced to close.’

The Early Years Alliance is carrying out a survey of energy costs among providers. Chief executive Neil Leitch said, ‘There’s no doubt the soaring cost of gas and electricity is having a significant impact and continues to heap additional pressure on a sector that is already being pushed to the brink.’

Paul Whiteman, general-secretary of the NAHT, said, ‘We need urgent clarification that the Government will continue to support schools beyond the initial six-month period previously announced.’

National chair of the Federation of Small Businesses, Martin McTague, said the review of energy support ‘must avoid a cliff edge for small firms that remain impacted and vulnerable’.

Meanwhile, charities have warned more families will fall into poverty without urgent support, with inflation now running at 10.1 per cent, and no decision yet on whether benefits will be uprated in line with inflation.

Child Poverty Action Group chief executive Alison Garnham said, ‘Families are now terrified about how they will get through the tough times ahead. It’s frankly unthinkable that the poorest kids and families in our society will be forced to pay for the economic mistakes of this government. As a bare minimum, the Chancellor must confirm urgently that all benefits will rise in line with inflation.’

Mark Russell, CEO of the Children’s Society, said, ‘There has been a complete lack of targeted support for children hardest hit by the cost-of-living crisis.’

  • This is an updated version of an article that appears in the November issue of Nursery World, which went to print earlier on the day that Liz Truss resigned as Prime Minister, on 20 October 2022.