UK Budget 2020: A last lifeline for the Early Years Industry?

Updated: Feb 16

The UK Government has announced the release date of the 2020 budget, which promises a “decade of renewal” and a “new chapter for the economy.” For the already fragile Early Years Sector, the budget is the last chance for the Government to resolve the early years funding crisis and ensure childcare remains accessible for all who require it.

Should the budget not address the current childcare concerns, then Yoopies forecasts that childcare will become an exclusive privilege for wealthier families and, as a result, severely limit social mobility.


Affordable Childcare: The Foundation of Society


In light of changes to the traditional family structure, with over 70% of mothers in work, the early years industry has become a pillar of modern-day society. Economic growth is reliant on reliable (and affordable) childcare which is what allows parents to return to work while also providing the next generation with valuable life skills.


As the need for childcare has increased, access to affordable childcare has declined. Nurseries and childminders are under constant pressure to raise their fees to keep up with the soaring cost of living. As a result, families face the challenge of financing these rising costs. In 2019, over a 27% of parents found meeting childcare costs “difficult or very difficult" and with fewer low-cost options available to them, it is the poorest families who are being hit the hardest.


The upcoming budget provides an opportunity for our government to directly tackle the current childcare crisis. However, the sector has yet to feature alongside the government's current priorities such as the environmental crisis, new hospitals, increasing the living wage and many more.


Fewer but pricier childcare places available


This budget also needs to address the alarming decrease in childminders in the UK. This will ensure that the childcare industry provides a range of affordable childcare options for families of all financial abilities. Childminders are an essential part of the early years sector, offering a cheaper alternative to nurseries and more flexible hours. Recently the total number of childminders has fallen to 39,400 in 2019, down from 40,900 in 2018 and 46,600 in 2016.


If this decline continues, Yoopies predicts childminding could become an extinct profession by the year 2036. Childminders have little support to balance the running of their business (as they are technically self-employed) and delivering the early years curriculum set out to them. It therefore comes as no surprise that fewer childminders are joining the profession in the first place. Francesca Chong, UK Country Manager for Yoopies says:


“In 2018, the Government scrapped the Childcare Business Grant, the only funding scheme to help childminders start their business"


In 2019 the Department of Education proposed higher OFSTED fees and if 2020 fails to encourage childminder numbers, there will be a continued hike in prices for fewer childcare places. As demand increases and supply decreases with less Government intervention, childcare risks becoming a privilege for richer families rather than a right for all who need it.



Funding Shortfall Hits Poorest Families


As well as supporting childminders, the Government must use the Budget to ensure that rising costs keep in line with the funding provided to other early years settings such as day nurseries. While many workers will welcome the 6% increase to the National Living Wage, for nurseries, introducing a higher living wage widens the gap between the cost of providing childcare and the actual funding that the nursery receives.


Additional local authority funding confirmed by the Department of Education in October is only 8p an hour for 2-year-old places, and up to 8p an hour for some 3-to-4-year-old places. According to the Early Years Alliance, this represents a funding increase of barely 2%.


The gap between funding and the cost of providing care has meant that ‘free’ childcare hours are, in practice, far from free. Many nursery settings have had to find alternative ways to make up the cost difference. This includes charging parents additional fees, cutting back on resources or risk closing their doors altogether. Poorer families may not be able to pay any extra fees meaning nurseries in more deprived areas are more likely to suffer.


In turn, parents are less able to return to work and educational opportunities for their children become restricted. Hence, raising the National Minimum Wage without the required funding measures risks exacerbating a situation in which the poorest children are denied the same start in life as wealthier families.


One parent told us:


“I feel unable to commit to full-time work and afford childcare five days a week”


Ben Suchar, CEO of Yoopies concludes


“The Government’s ‘decade of renewal’ is dependent on accessible childcare. Without significant funding, the next ten years will see poor families remaining poor and a ‘chapter for the economy’ that privileges the rich.”


#Childcare #UKBudget #budget2020 #childminder #nursery #babysitter #earlyyears #EYFS #nurseryschool #workingmum #workingdad #flexiworking #flexibleworking #youngmumsurvival #youngmum #youngdad #mother #father #motherhood #parenting #parentingblog #mumblog #familyblog #family #friends #children #baby #workbalance #yoopies #nationalminimumwage #livingwage #affordablechildcare #affordablenursery #nextgeneration #UKTreasury #familyfinance #financialstability #education #primaryeducation #UKEducation #nurseryeducation #economy #chancellor #Family #familytime #familyfirst #familygoals #familyfun #familyphotography #FamilyLove #familyday #familytrip #familylife #familyphoto #FamilyBusiness #familyvacation #familyportrait #familyphotos #familyovereverything #familydinner #familyiseverything #FamilyMatters #familyreunion #familyholiday #familyfriendly #familyroom #familyportraits #familylook #familyhome #blogger #bloggers #bloggerkesiftagi #bloggerslife #bloggerswanted #bloggeritalia #bloggerlifestyle #bloggerin #bloggersofinstagram #bloggerlove #bloggerlartakiplesiyor #bloggersgetsocial #bloggerspain #bloggerph #bloggermexicana #bloggervibes #bloggerdiaries #bloggerturkiye #bloggeruk #bloggergram #bloggersuk #motherhood #motherhoodunplugged #motherhoodthroughinstagram #motherhoodrising #motherhoodsimplified #motherhooduprising #motherhoodinspired #motherhoodrocks #motherhoodmoments #motherhoodthroughig #MOTHERHOODALIVE #motherhoodunited #motherhoodintheraw #motherhoodinstyle #motherhoodquotes #motherhoodlife #motherhoodblog #motherhoodismagic #motherhoodmultitasking #motherhoodissanctifying #motherhoodjourney #motherhoodphotography #motherhoodslens #motherhoodunfiltered

0 views

2020 Young Mummy Survival Guide - Alexandra Pearson

ymsg2014@gmail.com

Instagram: @youngmumsurvival

UK Parenting Blog

Baby Stork
Follow Us
  • White Facebook Icon
  • White Instagram Icon

parenting

motherhood

blogger

birth

young mum

Uk blogger 

Instagram influencer

pr agency  

#parenting #parentingblog #parenting101 #parentingtips #parentingblogger #parentinglife #parentingwin #parentingquotes #parentinggoals #parentingmemes #parentinghumor #parentingtheshitoutoflife #parentingfail #parentingadvice #parentingdoneright #parentinghacks  #motherhood #motherhoodrising #motherhoodsimplified #motherhoodmoments #mymotherhood #motherhoodalive #motherhoodthroughig #motherhoodjourney #motherhoodinstyle #motherhoodunfiltered #motherhoodquotes #motherhoodslens #motherhoodlens #motherhoodrocks #realmotherhood #motherhoodunited #motherhoodintheraw #motherhoodinspired #motherhoodthroughinstagram #motherhoodunplugged   #bloger #blog #bloggers #bloggerlife #blogs #bloggersofinstagram #bloggergirl #bloggerslife #blogto #blogpost #bloggerstyle #bloggerlifestyle #blogger 

This site was designed with the
.com
website builder. Create your website today.
Start Now