Asked by: Ellie Reeves (Labour - Lewisham West and East Dulwich)
Question to the Department for Education:
To ask the Secretary of State for Education, what financial support he is providing to the wraparound care sector in response to the covid-19 lockdown announced in January 2021.
Answered by Vicky Ford
We recognise that the wraparound childcare sector, like many sectors, is facing unprecedented financial pressures as a result of the COVID-19 outbreak. It is for this reason that the government has made a range of financial packages of support available for businesses to access throughout the current crisis. This includes tax relief, business loans or cash grants through the Coronavirus Job Retention Scheme and the Self-Employed Income Support Scheme, as well as a £594 million discretionary fund for councils and the devolved administrations to support local businesses that may not be eligible for other support during the current national lockdown.
While the department does not hold a central register of all wraparound provision and is therefore not able to give an assessment on the closure of providers, we do however recognise the value this sector offers to our children and young people, in terms of the enriching activities they provide and the valuable support they provide to our critical worker parents, and vulnerable children. That is why we have encouraged all local authorities to consider what local grants could be used to bolster this part of the childcare sector in their areas to safeguard sufficient childcare provision for children of critical workers and vulnerable children. This includes discretionary funding, such as the £594 million fund provided by government to local authorities to help them support local businesses, as well funding streams such as the Holiday Activities and Food Programme. The expanded programme, which comprises a £220 million fund to be delivered through grants to local authorities, will be expanded to reach all local authority areas over the Easter, summer, and Christmas holidays in 2021.
We are also acutely aware of the impact that the COVID-19 outbreak has had on young people and the vital role our childcare and youth services play. That is why more than £60 million of the unprecedented £750 million package for the voluntary and charity sector has been directed towards organisations supporting children and young people. More recently a £16.5 million youth COVID-19 support fund has been announced, which will protect the immediate future of grassroots and national youth organisations across the country. More information can be found here: https://www.gov.uk/government/news/government-announces-165-million-youth-covid-19-support-fund. This is on top of £200 million government investment in early intervention and prevention support initiatives to support children and young people at risk of exploitation and involvement in serious violence, through the Youth Endowment Fund.
In addition, the Youth Investment Fund remains a manifesto commitment for transformative levelling up across the country over the course of the parliament. In the recently announced Spending Review, £30 million of this was committed as capital investment for financial year 2021-22. This will provide a transformational investment in new and refurbished safe spaces for young people, so they can access support youth workers, and positive activities out of school, including sport and culture.
Asked by: Ellie Reeves (Labour - Lewisham West and East Dulwich)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment he has made of the effect of the level of funding support available to the wraparound care sector on the ability of businesses within that sector to remain financially viable during the covid-19 outbreak.
Answered by Vicky Ford
We recognise that the wraparound childcare sector, like many sectors, is facing unprecedented financial pressures as a result of the COVID-19 outbreak. It is for this reason that the government has made a range of financial packages of support available for businesses to access throughout the current crisis. This includes tax relief, business loans or cash grants through the Coronavirus Job Retention Scheme and the Self-Employed Income Support Scheme, as well as a £594 million discretionary fund for councils and the devolved administrations to support local businesses that may not be eligible for other support during the current national lockdown.
While the department does not hold a central register of all wraparound provision and is therefore not able to give an assessment on the closure of providers, we do however recognise the value this sector offers to our children and young people, in terms of the enriching activities they provide and the valuable support they provide to our critical worker parents, and vulnerable children. That is why we have encouraged all local authorities to consider what local grants could be used to bolster this part of the childcare sector in their areas to safeguard sufficient childcare provision for children of critical workers and vulnerable children. This includes discretionary funding, such as the £594 million fund provided by government to local authorities to help them support local businesses, as well funding streams such as the Holiday Activities and Food Programme. The expanded programme, which comprises a £220 million fund to be delivered through grants to local authorities, will be expanded to reach all local authority areas over the Easter, summer, and Christmas holidays in 2021.
We are also acutely aware of the impact that the COVID-19 outbreak has had on young people and the vital role our childcare and youth services play. That is why more than £60 million of the unprecedented £750 million package for the voluntary and charity sector has been directed towards organisations supporting children and young people. More recently a £16.5 million youth COVID-19 support fund has been announced, which will protect the immediate future of grassroots and national youth organisations across the country. More information can be found here: https://www.gov.uk/government/news/government-announces-165-million-youth-covid-19-support-fund. This is on top of £200 million government investment in early intervention and prevention support initiatives to support children and young people at risk of exploitation and involvement in serious violence, through the Youth Endowment Fund.
In addition, the Youth Investment Fund remains a manifesto commitment for transformative levelling up across the country over the course of the parliament. In the recently announced Spending Review, £30 million of this was committed as capital investment for financial year 2021-22. This will provide a transformational investment in new and refurbished safe spaces for young people, so they can access support youth workers, and positive activities out of school, including sport and culture.
Asked by: Ellie Reeves (Labour - Lewisham West and East Dulwich)
Question to the Department for Education:
To ask the Secretary of State for Education, what steps he is taking to provide financial support to the wraparound care sector in response to the covid-19 lockdown announced in January 2021.
Answered by Vicky Ford
We recognise that the wraparound childcare sector, like many sectors, is facing unprecedented financial pressures as a result of the COVID-19 outbreak. It is for this reason that the government has made a range of financial packages of support available for businesses to access throughout the current crisis. This includes tax relief, business loans or cash grants through the Coronavirus Job Retention Scheme and the Self-Employed Income Support Scheme, as well as a £594 million discretionary fund for councils and the devolved administrations to support local businesses that may not be eligible for other support during the current national lockdown.
While the department does not hold a central register of all wraparound provision and is therefore not able to give an assessment on the closure of providers, we do however recognise the value this sector offers to our children and young people, in terms of the enriching activities they provide and the valuable support they provide to our critical worker parents, and vulnerable children. That is why we have encouraged all local authorities to consider what local grants could be used to bolster this part of the childcare sector in their areas to safeguard sufficient childcare provision for children of critical workers and vulnerable children. This includes discretionary funding, such as the £594 million fund provided by government to local authorities to help them support local businesses, as well funding streams such as the Holiday Activities and Food Programme. The expanded programme, which comprises a £220 million fund to be delivered through grants to local authorities, will be expanded to reach all local authority areas over the Easter, summer, and Christmas holidays in 2021.
We are also acutely aware of the impact that the COVID-19 outbreak has had on young people and the vital role our childcare and youth services play. That is why more than £60 million of the unprecedented £750 million package for the voluntary and charity sector has been directed towards organisations supporting children and young people. More recently a £16.5 million youth COVID-19 support fund has been announced, which will protect the immediate future of grassroots and national youth organisations across the country. More information can be found here: https://www.gov.uk/government/news/government-announces-165-million-youth-covid-19-support-fund. This is on top of £200 million government investment in early intervention and prevention support initiatives to support children and young people at risk of exploitation and involvement in serious violence, through the Youth Endowment Fund.
In addition, the Youth Investment Fund remains a manifesto commitment for transformative levelling up across the country over the course of the parliament. In the recently announced Spending Review, £30 million of this was committed as capital investment for financial year 2021-22. This will provide a transformational investment in new and refurbished safe spaces for young people, so they can access support youth workers, and positive activities out of school, including sport and culture.
Asked by: Ellie Reeves (Labour - Lewisham West and East Dulwich)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment he has made of the effect of closures in the wraparound care sector during the covid-19 outbreak on the (a) learning and (b) development of children.
Answered by Vicky Ford
We recognise that the wraparound childcare sector, like many sectors, is facing unprecedented financial pressures as a result of the COVID-19 outbreak. It is for this reason that the government has made a range of financial packages of support available for businesses to access throughout the current crisis. This includes tax relief, business loans or cash grants through the Coronavirus Job Retention Scheme and the Self-Employed Income Support Scheme, as well as a £594 million discretionary fund for councils and the devolved administrations to support local businesses that may not be eligible for other support during the current national lockdown.
While the department does not hold a central register of all wraparound provision and is therefore not able to give an assessment on the closure of providers, we do however recognise the value this sector offers to our children and young people, in terms of the enriching activities they provide and the valuable support they provide to our critical worker parents, and vulnerable children. That is why we have encouraged all local authorities to consider what local grants could be used to bolster this part of the childcare sector in their areas to safeguard sufficient childcare provision for children of critical workers and vulnerable children. This includes discretionary funding, such as the £594 million fund provided by government to local authorities to help them support local businesses, as well funding streams such as the Holiday Activities and Food Programme. The expanded programme, which comprises a £220 million fund to be delivered through grants to local authorities, will be expanded to reach all local authority areas over the Easter, summer, and Christmas holidays in 2021.
We are also acutely aware of the impact that the COVID-19 outbreak has had on young people and the vital role our childcare and youth services play. That is why more than £60 million of the unprecedented £750 million package for the voluntary and charity sector has been directed towards organisations supporting children and young people. More recently a £16.5 million youth COVID-19 support fund has been announced, which will protect the immediate future of grassroots and national youth organisations across the country. More information can be found here: https://www.gov.uk/government/news/government-announces-165-million-youth-covid-19-support-fund. This is on top of £200 million government investment in early intervention and prevention support initiatives to support children and young people at risk of exploitation and involvement in serious violence, through the Youth Endowment Fund.
In addition, the Youth Investment Fund remains a manifesto commitment for transformative levelling up across the country over the course of the parliament. In the recently announced Spending Review, £30 million of this was committed as capital investment for financial year 2021-22. This will provide a transformational investment in new and refurbished safe spaces for young people, so they can access support youth workers, and positive activities out of school, including sport and culture.
Asked by: Ellie Reeves (Labour - Lewisham West and East Dulwich)
Question to the Department for Education:
To ask the Secretary of State for Education, how many early years childcare providers have closed in each of the last five years; and what estimate he has made of the number of such providers that will close in the next 12 months.
Answered by Vicky Ford
This is a matter for Her Majesty’s Chief Inspector, Amanda Spielman. I have asked her to write to the hon. Member and a copy of her reply will be placed in the Libraries of both Houses.
Asked by: Ellie Reeves (Labour - Lewisham West and East Dulwich)
Question to the Department for Education:
To ask the Secretary of State for Education, what plans he has to tackle funding deficit between the hourly costs of delivering a funded childcare place for a two-year-old and the rate paid to providers compared to places for three and four-year-olds.
Answered by Vicky Ford
The government continues to support families with their childcare costs. My right hon. Friend, the Chancellor of the Exchequer announced on 25 November a further £44 million investment in 2021-22.
We can now also confirm that in 2021-22 we will increase the hourly funding rates for all local authorities by 8p an hour for the 2 year old entitlement and, for the vast majority of areas, by 6p an hour for the 3 and 4 year old entitlement. This will pay for a rate increase that is higher than the costs nurseries may face from the uplift to the national living wage in April.
We are also increasing the minimum funding floor - meaning no council can receive less than £4.44 per hour for the 3 and 4 year old entitlements.
The small number of local authorities who have been protected from large drops to their funding rate as a result of the ‘loss cap’ will have their 2020-21 hourly funding rates for 3 and 4 year olds maintained in 2021-22. 2 of these authorities will see an increase to their hourly rate as they come off the loss cap in 2021-22.
In 2021-22, the average hourly funding rate for a 3-4 year old for the 15 hours universal entitlement in England will be £4.91 and the average hourly funding rate for a 2 year old in England will be £5.56.
Throughout the COVID-19 outbreak, we have monitored the health of the early years market through continual contact with early years sector organisations through regular meetings and working groups. We have ensured that early years providers have been able to access all the support available by continuing to fund the free childcare entitlements and via the package of additional support provided by the government, which includes Coronavirus Job Retention Scheme (CJRS,) business rates relief, income support and job retention schemes.
We have also updated the CJRS guidance, so that all providers who have seen a drop in their overall income are able to furlough any staff, so long as they were on payroll on or before 30 October, and aren’t required for delivering the government’s funded entitlements. Providers should consult the full guidance on the CJRS scheme before submitting a claim. Childminders may use the Self Employment Income Support Scheme. The sector has also benefitted from business rates holidays and business loans.
Asked by: Ellie Reeves (Labour - Lewisham West and East Dulwich)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment he has made the financial losses sustained by childcare providers due to the covid-19 outbreak; and what plans he has to prevent mass closures in that sector.
Answered by Vicky Ford
The government continues to support families with their childcare costs. My right hon. Friend, the Chancellor of the Exchequer announced on 25 November a further £44 million investment in 2021-22.
We can now also confirm that in 2021-22 we will increase the hourly funding rates for all local authorities by 8p an hour for the 2 year old entitlement and, for the vast majority of areas, by 6p an hour for the 3 and 4 year old entitlement. This will pay for a rate increase that is higher than the costs nurseries may face from the uplift to the national living wage in April.
We are also increasing the minimum funding floor - meaning no council can receive less than £4.44 per hour for the 3 and 4 year old entitlements.
The small number of local authorities who have been protected from large drops to their funding rate as a result of the ‘loss cap’ will have their 2020-21 hourly funding rates for 3 and 4 year olds maintained in 2021-22. 2 of these authorities will see an increase to their hourly rate as they come off the loss cap in 2021-22.
In 2021-22, the average hourly funding rate for a 3-4 year old for the 15 hours universal entitlement in England will be £4.91 and the average hourly funding rate for a 2 year old in England will be £5.56.
Throughout the COVID-19 outbreak, we have monitored the health of the early years market through continual contact with early years sector organisations through regular meetings and working groups. We have ensured that early years providers have been able to access all the support available by continuing to fund the free childcare entitlements and via the package of additional support provided by the government, which includes Coronavirus Job Retention Scheme (CJRS,) business rates relief, income support and job retention schemes.
We have also updated the CJRS guidance, so that all providers who have seen a drop in their overall income are able to furlough any staff, so long as they were on payroll on or before 30 October, and aren’t required for delivering the government’s funded entitlements. Providers should consult the full guidance on the CJRS scheme before submitting a claim. Childminders may use the Self Employment Income Support Scheme. The sector has also benefitted from business rates holidays and business loans.
Asked by: Ellie Reeves (Labour - Lewisham West and East Dulwich)
Question to the Department for Education:
To ask the Secretary of State for Education, what assessment he has made of the effect of the minimum wage increase on the childcare sector; and if he will make it his policy to increase the per child funding rate for the (a) 16 and (b) 30 hours childcare entitlement.
Answered by Vicky Ford
The government continues to support families with their childcare costs. My right hon. Friend, the Chancellor of the Exchequer announced on 25 November a further £44 million investment in 2021-22.
We can now also confirm that in 2021-22 we will increase the hourly funding rates for all local authorities by 8p an hour for the 2 year old entitlement and, for the vast majority of areas, by 6p an hour for the 3 and 4 year old entitlement. This will pay for a rate increase that is higher than the costs nurseries may face from the uplift to the national living wage in April.
We are also increasing the minimum funding floor - meaning no council can receive less than £4.44 per hour for the 3 and 4 year old entitlements.
The small number of local authorities who have been protected from large drops to their funding rate as a result of the ‘loss cap’ will have their 2020-21 hourly funding rates for 3 and 4 year olds maintained in 2021-22. 2 of these authorities will see an increase to their hourly rate as they come off the loss cap in 2021-22.
In 2021-22, the average hourly funding rate for a 3-4 year old for the 15 hours universal entitlement in England will be £4.91 and the average hourly funding rate for a 2 year old in England will be £5.56.
Throughout the COVID-19 outbreak, we have monitored the health of the early years market through continual contact with early years sector organisations through regular meetings and working groups. We have ensured that early years providers have been able to access all the support available by continuing to fund the free childcare entitlements and via the package of additional support provided by the government, which includes Coronavirus Job Retention Scheme (CJRS,) business rates relief, income support and job retention schemes.
We have also updated the CJRS guidance, so that all providers who have seen a drop in their overall income are able to furlough any staff, so long as they were on payroll on or before 30 October, and aren’t required for delivering the government’s funded entitlements. Providers should consult the full guidance on the CJRS scheme before submitting a claim. Childminders may use the Self Employment Income Support Scheme. The sector has also benefitted from business rates holidays and business loans.
Asked by: Ellie Reeves (Labour - Lewisham West and East Dulwich)
Question to the Department for Education:
To ask the Secretary of State for Education, what specific steps he is taking to allocate funds to improve the affordability of childcare.
Answered by Vicky Ford
The government continues to support families with their childcare costs. My right hon. Friend, the Chancellor of the Exchequer announced on 25 November a further £44 million investment in 2021-22.
We can now also confirm that in 2021-22 we will increase the hourly funding rates for all local authorities by 8p an hour for the 2 year old entitlement and, for the vast majority of areas, by 6p an hour for the 3 and 4 year old entitlement. This will pay for a rate increase that is higher than the costs nurseries may face from the uplift to the national living wage in April.
We are also increasing the minimum funding floor - meaning no council can receive less than £4.44 per hour for the 3 and 4 year old entitlements.
The small number of local authorities who have been protected from large drops to their funding rate as a result of the ‘loss cap’ will have their 2020-21 hourly funding rates for 3 and 4 year olds maintained in 2021-22. 2 of these authorities will see an increase to their hourly rate as they come off the loss cap in 2021-22.
In 2021-22, the average hourly funding rate for a 3-4 year old for the 15 hours universal entitlement in England will be £4.91 and the average hourly funding rate for a 2 year old in England will be £5.56.
Throughout the COVID-19 outbreak, we have monitored the health of the early years market through continual contact with early years sector organisations through regular meetings and working groups. We have ensured that early years providers have been able to access all the support available by continuing to fund the free childcare entitlements and via the package of additional support provided by the government, which includes Coronavirus Job Retention Scheme (CJRS,) business rates relief, income support and job retention schemes.
We have also updated the CJRS guidance, so that all providers who have seen a drop in their overall income are able to furlough any staff, so long as they were on payroll on or before 30 October, and aren’t required for delivering the government’s funded entitlements. Providers should consult the full guidance on the CJRS scheme before submitting a claim. Childminders may use the Self Employment Income Support Scheme. The sector has also benefitted from business rates holidays and business loans.