Early Years Providers: Government Support

Stephen Morgan Excerpts

Wednesday 9th July 2025 Westminster Hall

[The Parliamentary Under-Secretary of State for Education (Stephen Morgan)]

It is a pleasure to serve with you in the Chair, Mr Pritchard. I thank my hon. Friend the Member for Sherwood Forest (Michelle Welsh) for securing a debate on this most important subject. I thank all Members for their contributions, including the Chair of the Education Committee, my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes).

The foundations of success are laid in early childhood. Ensuring that every child has the best start in life and the chance to achieve and to thrive is the foundation stone of the Government’s mission to break down barriers to opportunity. On Monday, the Government published our vision for the future of early years, so this is a timely debate that demonstrates that my hon. Friend the Member for Sherwood Forest clearly has her finger on the pulse on these issues.

Our landmark strategy will bring together early years and family services and put children’s first years at the heart of efforts to improve life chances. “Giving every child the best start in life” sets out the first steps to deliver our plan for change commitment for a record number of children to be ready to start school by 2028. That builds on the work that we have already started and the impacts that have already been felt. We have delivered the biggest uplift in the early years pupil premium on record, opened new breakfast clubs and funded 300 new and expanded school-based nurseries across the country, two of which, I am proud to say, sit in my hon. Friend’s constituency. From September, we are rolling out 30 hours of funded childcare for working parents, saving eligible parents who use their full entitlement an average of £7,500 a year. With the new strategy, we will go further and faster. We will spend close to £1.5 billion over the next three years to make early education more accessible and higher quality.

Central to my ambition to improve outcomes for all children is a diverse and thriving early years sector with a brilliant and valued workforce. We want early years to be a career that people are proud to join and stay in. That means more opportunities to gain qualifications and build fulfilling careers. We want high-quality evidence to underpin training, support and development for early years professionals. That will mean that passionate people can grow their skills and careers, and help every child to thrive.

Alongside a strong market, we want to drive higher standards through strengthened improvement and accountability systems that support and drive high-quality provision for settings and families. That includes funding for Ofsted to inspect more often, and inspect new settings within 18 months of them opening. Our ambition is to make early years education the best it can be for every child in every setting.

The early years workforce is at the heart of the Government’s opportunity mission and a top priority for the Department for Education. I pay tribute to those who are dedicated to the sector and working in it to improve life chances for every child. I declare an interest that my sister is an early years practitioner of 30 years’ standing. I can assure her and everyone who works in the sector that this Government hugely value their work.

As set out in the recent “best start in life” strategy, we are improving the quality of early education by investing in training and qualifications to raise the skill levels of the workforce. We are also increasing understanding of high-quality practice and providing access to proven, evidence-based early years programmes. That is backed with an extra £400 million over the next three years to improve quality and drive better outcomes for children. We will collaborate with the sector to co-design and consult on a new professional register and establish an evidence-informed career framework to support career progression at all levels.

We will recruit more early years teachers in areas where they are needed the most, more than doubling the number of funded early years initial teacher training courses by 2028. The early years teacher incentive will support recruitment and retention of early years teachers in the most deprived communities by giving existing and new early years teachers who work in eligible nurseries £4,500 per annum so that every child, no matter where they live, can benefit from high-quality early education.

We are rolling out a new early years teacher degree apprenticeship and transforming the apprenticeship offer into a new growth and skills programme with shorter, more flexible training options. That includes continuing and extending free online child development training for all staff, and funding more places on the national professional qualification in early years leadership programme.

We are investing in data-driven interventions to support early maths, literacy and language skills, and doubling the number of early years stronger practice hubs from 18 to 36 so that even more settings and childminders can access free resources and training to help their practice. We are helping more people to discover rewarding early years careers through our “Do something big” national recruitment campaign, and building on our pilot to offer financial incentives to attract and retain the best educators, including our campaign to encourage more men to go into the sector.

We are making it easier for managers to check qualifications and increase confidence in staff sufficiency by using the new “Check an early years qualification” digital service. Providers can maximise the potential of staff who have the right skills and experience but do not hold an approved qualification through the experience-based route.

We are working closely with local areas to do everything we can to ensure that there are sufficient places and the sector has the workforce it needs ahead of September. We have already seen a strong response from the early years sector following the introduction of the new entitlement. In 2023-24 we saw nearly three times the growth in places and more than 1.5 times the growth in staff working in early years compared with 2022-23, showing that the early years market is responding positively. Continuing that growth ahead of September will allow more families to benefit from the expansion, and we are determined that the sector receives the support it needs to make that happen.

The strength of our varied and diverse providers gives families a choice of high-quality, flexible options that meet their needs, but it can mean that stand-alone settings miss out on the benefits that come from working together. We will work with the sector to support brilliant settings so that they grow and spread their expertise. We will also explore how providers could, if they choose to, pool back-office functions and overheads so that nursery managers can focus increased efforts on the children in their care.

We want to ensure that the early education and childcare market continues to be financially sustainable, able to create more places where they are needed, and focused on the needs of children. We will continue to monitor the financial sustainability of the market and may take further steps to increase the transparency of the largest providers if necessary. We have seen a decline in the number of not-for-profit providers, especially in the most deprived areas of the country, and we will work with those providers, alongside philanthropy and social investors, to explore new ways to support them to expand, and encourage new providers to open settings.

Turning to the points made by a number of Members about funding, we are expecting to spend more than £8 billion on the early years entitlements this year, rising to more than £9 billion in the next financial year. We have introduced a £75 million expansion grant to support providers ahead of September’s roll-out, and we have almost doubled the early years pupil premium. Our hourly funding rate covers core costs, taking account of cost pressures, including forecasts of average earnings, inflation and the national living wage. We want to ensure that funding is distributed fairly and effectively, reflecting the cost of delivery in different parts of the country. We will renew our approach and set out more detail in due course.

The Chair of the Education Committee is a real champion for maintained nursery schools, which are a valued and important part of the early years system. They are high-quality providers that often focus on disadvantage and special educational needs and disabilities, helping us to give every child the best start in life. To recognise the costs that maintained nursery schools face over and above those experienced by other providers, we provide additional supplementary funding to local authorities for maintained nursery schools in their area. Maintained nursery schools also make crucial contributions to stronger practice hubs, which we are expanding.

With regard to comments made about the Best Start family hubs, ensuring that every child has the best start in life and the chance to achieve and thrive is the foundation stone of our Government’s opportunity mission. We will spend close to £1.5 billion over the next three years on improving family services and early years education to begin the hard work needed. Best Start family hubs will be backed by £500 million of that investment between 2025 and 2029, and we will fund hubs in every local authority area to ensure that the children and families who need support the most, especially those from low-income backgrounds or with additional vulnerabilities, can access it. Through the hubs, families will be connected to other local services such as healthcare, relationship support, housing and job support.

My hon. Friend the Member for Sherwood Forest mentioned childminders, as did the Chair of the Select Committee. Childminders play an important role in the childcare system, offering the flexible and personalised care that many families value. They also tend to look after younger children and are a key part of the provider landscape as we expand funded childcare hours for those children. We have already taken steps to support childminders, including making it easier for them to work from different places, such as schools and other community settings.

We now want to go further. We have listened to the sector, which has consistently called for monthly payments for early years entitlements. I can assure Members that we will work with local authorities and others to ensure that, where they want to be, childminders and other early years providers are paid monthly for the funded hours that they provide, making their income more sustainable. We will also keep working with Jobcentre Plus to encourage more people to become childminders.

The shadow Secretary of State, the right hon. Member for Sevenoaks (Laura Trott), made a number of points on the reception baseline assessment. Digital assessments in primary school happen all around the globe and have been in place for several years in English primary schools, with the multiplication tables check in year 4. The reception baseline assessment is a short assessment to understand children’s abilities when they start reception, in order to enable measures of progress through primary schools. It is conducted on a one-to-one basis with teachers, and guidelines are in place to support pupils on the assessment. A revised version of the RBA, with a digital element, was set out in September. For more questions, pupils will be able to interact with images and items on a tablet screen, supported by a teacher. I can assure all Members that it has been subject to extensive trials with teachers and pupils, which commenced in 2019 under the previous Administration. Feedback from both groups has been positive.

I again thank my hon. Friend the Member for Sherwood Forest for securing this debate on such an important topic. I also acknowledge the engagement of all Members this afternoon, and the dedicated workforce in the early years sector, who do so much for our country. The Government are committed to breaking down the barriers to opportunity, and the importance of the early years cannot be overstated. Our strategy is to start a decade of national renewal for families, giving every child the best start in life.