by Jess Gibson
The richest households in England will be eight times more likely to benefit from the full roll-out of the government’s funded early entitlement expansion than the most disadvantaged families, analysis by the New Economics Foundation (NEF) has found.
The government’s funded early entitlement expansion will be fully rolled-out in September, providing 30 funded hours of education and childcare for children aged nine months to four years old in families where all parents earn at least the equivalent of 16 hours at the national minimum or living wage per week.
However, researchers have warned that these requirements will deny support to those families that would most benefit from it. Even among families eligible for funded early education and childcare hours, those on lower incomes will need to spend a greater proportion of their earnings to access them.
For example, the analysis finds that working families receiving £34,000 would have to spend over 11% of their gross earnings to have one child in full-time early education and childcare. However, in comparison, a family on £49,000 would need to spend just 8% of their earnings, and a family on £124,000 would only need to spend 3%.
The report analyses the inequities built into the current model and proposes a new one, which it says would simplify the current system and help families afford more hours. It includes:
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15 hours of free early education and childcare for all children above the age of nine months.
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For working families, a cap at 5% of family earnings on the cost of additional all additional hours of childcare they purchase.
Tom Pollard, head of social policy at NEF, said: “Childcare has critical roles to play in both early years development and supporting parents to work. While additional government investment is welcome, it will fail to effectively deliver on these objectives without more fundamental reform.
“The current system is overly complex for parents to navigate, squeezes the budgets of families already struggling with the cost-of-living crisis, and denies full access for children from the poorest households, even though we know they are the ones who would benefit the most.
“Our proposed system of a universal 15 hours, combined with a cap at 5% of earnings on what working families pay for additional hours, would be simpler, fairer and, for most families, cheaper than the current system.”
Neil Leitch, CEO of the Early Years Alliance, said: “Given that children from more disadvantaged backgrounds stand to gain the most from access to high-quality early years provision, it is incredibly concerning to see just how skewed the current entitlement offers are in favour of wealthier families.
“We continue to support the principle of genuinely free, high-quality care and early education for every child – but if, as the evidence suggests, constraints on government finances make this promise unachievable, then it is only sensible to explore alternative approaches, particularly those that prioritise equity and ensure that every child, regardless of background, can access the early education they deserve. This must be a focus of any government genuinely committed to improving life chances and tackling disadvantage through its Opportunity Mission.
“Ultimately, we need a system where access to early years provision does not depend on family income, location, or ability to pay. The government must ensure that its policies support those children and families who stand to benefit the most, not just those who find it easiest to access the offer as it stands.”