Funding for childcare has been cut in real terms, National Audit Office reveals
David Cameron had promised to double the number of free hours offered to parents at the general election
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Your support makes all the difference.The Government has cut funding for childcare despite a Conservative manifesto pledge to double the number of free hours parents get.
An analysis by the National Audit Office said that early years funding for three and-four year-olds had been cut by 4.5 per cent in real, per pupil terms between 2013 and 2015.
The confirmation of cuts come after the IPPR thinktank warned in October that the Tories' election pledge was underfunded.
In the House of Commons on Wednesday morning David Cameron said the free childcare scheme – which was meant to be launched in 2015, would now be introduced in 2017, with pilot schemes this year.
Labour leader Jeremy Corbyn also pointed to other findings in the report suggesting that tighter eligibility criteria for the extra hours would mean many families promised the assistance at the election would not get it.
“One third of families promised 30 hours of free childcare now won't receive it. This is a broken promise,” he said.
“The NAO report also warns that many childcare providers are not offering the new entitlement due to insufficient funding.
“There are 41,000 three-year-olds missing out on free early education as a result of this. Will the Prime Minister intervene and ensure those children get the start in life they deserve?”
The Conservative manifesto had promised to “give families where all parents are working an entitlement to 30 hours of free childcare for their three and four year-olds”.
In response to Mr Corbyn, David Cameron quoted a part of the NAO report that said the Government has “successfully implemented” the existing entitlement, then made a joke about Mr Corbyn’s new economic advisor.
The NAO says the amount spent on childcare for three and four-year-olds per year is £2.2 billion – slightly up in cash terms since 2013, but spread more thinly because there are more children, and lower in real terms because of inflation.
The funding relates to the Dedicated Schools Grant, which funds the free entitlement for childcare.
“In 2015-16, the Department has allocated £2.7 billion for early years childcare, of which some £2.2 billion is being spent on 3- and 4-year olds,” the NAO said in the report, released on Wednesday.
“The total amount of funding for 3- and 4-year-olds has increased since 2013, but funding per child has remained the same in cash terms, meaning a 4.5 per cent cut in real terms.
“The current national average rates are £5.09 per hour for 2-year-olds and £4.51 for 3- and 4-year-olds, excluding Early Years Pupil Premium.”
Education and Childcare Minister, Sam Gyimah, said: “As this report shows, more parents than ever are accessing high-quality free childcare, backed by record levels of investment – including an additional £1 billion a year by the end of the parliament.
“The latest figures show our plan is working, with nearly all three and four year olds receiving 15 hours free childcare a week as well as over 70 per cent of disadvantaged two year olds, according to a recent survey of councils – and more than ever are reaching a good level of development.
“Thanks to our plan support more working parents by doubling the free hours the Government provides we expect this trend to continue.”
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