FREE Childcare

Funding for two years olds – survey results are in

Over the last two months we have been running a survey fo providers who have taken part in the pilot of free entitlement offered to disadvantaged two year olds.  The survey was launched in response to growing concern throughout the nursery sector that  funding to support this extension of the free entitlement to two year olds would be inadequate.

Nurseries themselves have raised concerns about the hourly rate Local Authorities are likely to fund for two year olds as many of them, as already detailed within the pages of this website, are already struggling with sustainability based on the insufficient rate paid for three and four year olds.  Not only is the ratio of children to staff lower for two year olds, they also incurr greater costs in terms of provision of nappies etc.  In addition it is highly likely that those two year olds eligible for funding will require extra support based on any additional needs, the costs of which a nursery will be expected to swallow themselves.

In total more than 700 settings were contacted with 92% confirming that they had taken part in the survey.  Three-quarters of those who had taken part had fewer than ten two year olds participating in the scheme at their setting with the bulk of those settings having fewer than five eligible children on the pilot.

The average amount paid out to nurseries per child per hour was between £4.00 and £4.49, a definite increase against the average amound paid out currently by local authorities to fund free entitlement for three and four year olds.  Worringly one respondent claimed to be receiving less than £3.50 per child per funded hour whilst the maximum rate paid out was between £5.00 and £5.49 per hour.  Notably whilst 44% of respondees said the sum they received was ‘somewhat adequate’ a further 37% said the sum they received was ‘slightly’, ‘not really’, or ‘not at all adequate’.

When asked whether the disadvantaged two year olds they had cared for on the pilot scheme had special needs there was an equal split between children who did and those children who didn’t.  However, when asked if any of the funded two year olds had any additional needs or requirements outside of the special educational needs usually identified (for example language barriers, complicated family situations, emotional or behavioural issues) 72% of those questioned responded postively.  When asked for further detail it transpired that these additional needs meant that the nursery often had to bring in extra staff, or invest in additional resources, in order to support these children.

In the main it seems that providers welcome the opportunity to support funded two year olds however continue to be frustrated that the additional burden in terms of time, labour and resources, is simply not recognised by local authorities who are unwilling, or unable, to cover the additional costs generated.

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