What’s going on with the 30 hours of free childcare?
What an excellent question. On the surface, the government’s manifesto pledge to provide 30 hours free childcare to all three and four year olds of working parents is great. An excellent concept that has been plagued with implementation issues.
Who is eligible for the full 30 hours free childcare?
Firstly, you must be the parent/carer of a three or four year old. You and your spouse/partner must both earn the equivalent of 16 hours at the National Minimum Wage per week. This works out as £112.80 per week for 21-24 year olds and £120 per week for the 25 and overs. This can be through zero-hour, fully contracted or self employed work. Apprentices must earn £56 per week. If you, or your co-parent partner, earns over £100,000 per year then you no longer qualify for the 30 hours of free childcare.
The new scheme can make a big impact on your household budget so making sure you are taking full advantage is important.
What was all the registration fuss about?
Many parents found the registration process was complicated by technical issues on the part of HMRC. Very frustrating for the user; just as frustrating for the over-worked and under-funded HMRC. Most of these initial problems have been ironed out and the hope is that the three monthly reconfirmation process will be much smoother.
Do I have to take the full 30 hours to get it free?
No, the pre-existing 15 hours of free childcare still applies and you can add on additional hours up to the 30 hour limit.
Why doesn’t my child’s nursery offer the government funded places?
Nurseries and childcare providers do not have to offer the government funded places. The reason they are not participating in the scheme is because there is a substantial shortfall between the amount of government funding and the actual cost of provision. It is important to remember that nurseries and childcare providers are a business. They have your children’s best interests at heart, but they still have to break even. Unfortunately they are not allowed to simply charge parents/carers the shortfall amount. Most are unwilling to cut the corners that would enable them to accommodate the 30 hours free childcare at the government’s rate. This would include things like hiring less experienced, cheaper staff or reducing the staff-child ratio.
Local authorities receive an average of £4.78 per hour, per child and they are only obliged to pass on 93% of this to nurseries and childminders participating in the scheme. Many nurseries spend around £6 per hour to deliver their high standards of care. In a Pre-school Learning Alliance survey of 1,400 nurseries, 74% found that the funding offered did not cover the cost of the free hours. Some have already closed and 38% did not think that their businesses would be sustainable in 12 months. This is likely to have a devastating impact on nursery provision with far less choice of facility for parents and the potential for less quality childcare as providers attempt to stay within budget in order to remain open.
Will I have to pay for extras to supplement this funding shortfall?
The government do allow childcare providers to charge for extra services, goods and activities on a voluntary basis because the funding is specifically for the education and care of the child. This may include things like trips and food.
It is also likely that child care providers will have to increase the cost of their non-funded places in order to bridge the gap of the government’s underfunding.
Even if you’re devastated that your lovely nursery isn’t offering the 30 free hours, hopefully this has shed some light on the reasons why. The aim of relieving the cost of childcare from working parents is admirable, but nothing (particularly high quality early years education) is free, someone has to pay for it somewhere.
