YMCA, the largest voluntary childcare provider in the country, estimates a 13.2% increase in qualified staff (45,000) is needed by September 2025 to accommodate the expanded 30 funded hours.
YMCA projection is a conservative estimate, based on the Department for Education’s predictions of new funded hours taken up, hinging on 2023 workforce levels remaining static.
The ongoing departure of qualified staff from the sector suggests an even more significant potential shortfall could be on the horizon unless swift action is taken. With the impending expansion of hours and increased demand, the urgency to rapidly expand the early years workforce is paramount.
The Government is due to implement a full 30-hour entitlement expansion in 20 months’ time; YMCA warns that it takes 18 months to achieve the necessary Level 3 qualification, demonstrating the imminent impact of the shortfall as time quickly runs out to establish the workforce needed to deliver it.
“While we appreciate the Government’s commitment to early years childcare, we are deeply concerned about the widening gap between demand and capacity,” warns Denise Hatton, Chief Executive of YMCA England & Wales.
“To truly meet the needs of families, there must be an urgent concerted effort to address the impending recruitment and retention crisis. The current trajectory puts the sustainability of quality childcare at risk.”
Highlighting the stark realities providers face, YMCA underscores the challenges posed by the Government’s role as the largest buyer of childcare hours.
Potential hurdles include the possibility of some sector providers capping funded places and imposing substantial additional fees for families, such as extra hours, early drop-offs, late pick-ups, meals, and excursions.
The sector, grappling with persistently underfunded hourly rates exacerbated by inflation and the National Living Wage (NLW), has long faced challenges resulting in staff shortages and closures, particularly in socio-economically disadvantaged regions. The recent increase in hourly rates for those aged two and under is undoubtedly a positive step.
The Government’s commitment to supporting younger children is evident in the notable 34% increase in the average hourly rate for 2-year-olds, showcasing a dedication to maintaining the necessary staff-to-child ratio. However, concerns loom as the annual funding increase for three – and four-year-olds, who are already receiving 30 funded hours, falls short at 4.7%, failing to keep pace with the rising costs associated with delivering quality childcare.
While the Government has acknowledged the importance of the Early Years Pupil Premium with a 3% increase to £0.68 per hour per eligible child, YMCA warns that this is insufficient to provide the required support for children in this group.
The ambitious expansion plan, coupled with challenges like delays in the Childcare capital expansion grant and unanticipated qualification requirements, threatens the ability of providers to deliver quality childcare.
As the sector faces a pivotal moment, YMCA and other influential voices welcome additional funding for two-year-olds as a step in the right direction but urge a comprehensive review of funding rates, workforce and timelines to ensure the best possible outcome. “We stand ready to collaborate with policymakers to create a childcare system that not only meets the needs of families but also ensures the sustainability and success of this ambitious initiative,” concludes Denise Hatton, Chief Executive, YMCA England & Wales.
As announced as a transformative step to ease the financial strain on parents and enhance childcare accessibility, the Government’s recent commitment to extend funded hours for early years childcare has been met with both praise and apprehension by the sector. The bold intervention, designed to benefit children aged nine months and above, has sparked concerns among early years childcare providers regarding funding rates and their potential ramifications on staffing and service delivery.
YMCA collectively works with 166,039 young people, children, parents and carers to provide the best possible start in life.
Read the full report here.