30 Hours Funding for Children Aged 9 Months+: A Year in Review
When the roll-out of the 30 hours childcare funding for eligible families was introduced, it felt like a sigh of relief for many parents who had been spending a significant proportion of their income on childcare so they could continue to work.
Looking back over the first year, for many families the 30 hours funding has considerably reduced their childcare costs and eased a financial burden, which is fantastic to see. From a nursery perspective, we have also noticed a much larger intake of funded children, with many families choosing to increase their hours because of the additional funding.
However, alongside the reduction in costs for families, providers are finding there is still a great deal of confusion around how 30 hours childcare funding actually works.
How Many Hours of Childcare Funding Do You Get?
Firstly, when parents first heard the words "30 hours", it was understandably easy to assume this meant 30 funded hours every week, all year round.
As we know, the 30 hours is intended to cover term time only, for 38 weeks of the year, rather than the full year. When this is spread across the full year, this equates to around 22 hours per week.
This can leave parents expecting that they are entitled to a much higher number of funded hours each week, only to find that this is not the case.
Some providers have also had to cap the amount of funding that can be used each day, meaning it may even be less than 22 hours, to ensure that the funding they receive remains sustainable alongside the costs of delivering the childcare.
Is 30 Hours Childcare Really Free?
The language around "free childcare" can also create confusion.
While the funding provides valuable support towards the cost of childcare, it does not cover everything involved in providing a high-quality childcare place.
Costs such as food, consumables and enhanced provisions, which go beyond the Early Years Foundation Stage (EYFS) requirements, are not included within the funded hours.
This has left childcare providers having to explain to parents why their childcare has not suddenly become completely "free", and this is still a conversation we regularly have.
We absolutely understand why families are coming to us with the expectation that their childcare costs will be significantly reduced. The misunderstanding is understandable, particularly when the funding is widely communicated as "30 hours" or "free childcare".
When Does 30 Hours Funding Start for Children Aged 9 Months+?
It is brilliant that the funded offer has been extended to younger children, from the age of 9 months and over. However, the eligibility dates can be difficult for families to understand.
Some parents naturally enrol their child in the term in which they turn 9 months, without realising that their funded entitlement does not begin until the following term.
This can be particularly confusing because parents may have already applied for and received confirmation of their Working Family Funding code, which can make it seem as though they are immediately entitled to funded hours.
In reality, being eligible for the scheme and having funded hours available from a particular term are not always the same thing, and this distinction can understandably cause frustration for families.
This can be particularly difficult for families who are returning to work around the end of their statutory maternity leave.
In some cases, there can be a period where parents are required to pay their usual private childcare fees before their funded entitlement begins. For families already navigating the transition back to work and the costs associated with starting childcare, this can make the process more challenging than they may have anticipated.
The Reality of Funded Childcare
We have also seen a number of childcare providers unfortunately closing their doors, as they simply cannot sustain the rising costs of running a childcare setting when an increasing proportion of their income now comes through Local Authority funding.
For some providers, the funding available is simply not enough to cover the true cost of delivering the level of care and quality expected.
This is a real concern, as fewer providers ultimately means fewer choices for families.
The success of the funded childcare offer therefore cannot be measured solely by how much it reduces costs for parents. It is also important to consider whether providers are receiving enough funding to sustainably deliver the care, staffing and resources that children need.
Reflecting on a Year of 30 Hours Funding
We welcome the fact that more families are now able to access high-quality childcare, allowing more parents to work and provide for their children without such a significant financial burden.
This is especially important given how vital the first five years of a child's life are to their development.
However, we hope that the Government will continue to review the 30 hours childcare funding and consider what is needed to enable providers to sustainably deliver the quality of childcare that children and families deserve.
Supporting families with the cost of childcare is incredibly important, but it is equally important that the funding model allows nurseries and other childcare providers to remain financially sustainable, retain skilled staff and continue providing high-quality care.
Overall, the introduction of the 30 hours funding has undoubtedly been a positive step for many families. However, there is still a need for greater clarity around what the funding covers, when eligibility begins and the additional costs involved in providing high-quality childcare.
Most importantly, there needs to be continued consideration of whether the funding being provided reflects the true cost of delivering that care, so that the benefits of the scheme can be sustained for families and providers alike.
We believe in giving families transparent insight into our pricing structure and available funding or tax-free options.