New report argues that Government should reverse its plans to double the free childcare entitlement
Key points from this research;
The argument being put forward is to double the free entitlement for families on low income and make this a means-tested approach based on the disadvantaged criteia for two-year-olds. It would also offer 15hrs free childcare for those one and two years from low-income families as well as thirty hours free childcare for three and four years olds,
Eligibility would be based on families receiving:
- Income Support
- income-based Jobseeker’s
- Allowance, tax credits (with an annual income of under £16,190 before tax) and Universal Credit.
This alternative model would help childcare providers, as an estimate of 24.1% of children would be eligible compared to 42.95, therefore providing scope for childcare providers to make ends meet.
Following a means-tested approach would mean that providers would receive more money for Early Years Pupil premium, instead of receiving the average £4.94, providers would be getting a much closer figure of £5.47. This would not cost government any more money than its proposed model
The proposal from Think Tank Localis would mean childcare providers can provode high quality childcare whist not having to worry about sustainability, giving them the scope to cross-subside funds.
What are peoples views on this proposal?