Written evidence by Coram PACEY (EYS0098)

Education committee

Early Years: Improving Support for Children and Families

About Coram PACEY

Coram PACEY was formed in 1977. We are a professional association dedicated to supporting home-based childcare professionals including childminders and nannies to provide high quality services, information and advice to children, their families and carers. We want all children to experience high quality childcare and early education, helping them to have a bright future.

Introduction

Coram PACEY welcomes the opportunity to contribute to this important inquiry into the early years sector. In recent years, we have seen a sharpened political focus on the early years, most notably through the largest expansion of funded childcare for working families in England. Yet this progress has coincided with significant challenges. The sector is grappling with mounting economic pressures and children and families are experiencing increasing strain too. The role of family services has never been more vital and ensuring access to affordable and flexible early years provision that meets the diverse needs of families is essential. Home-based childcare plays a crucial role in this landscape, offering a valued option for many families, including those with children who have Special Educational Needs and Disabilities (SEND) - and this choice must be protected.

Our key recommendations

We urge the Committee to recommend that government:

1)      Develop a national strategy for childminding - with meaningful action to reverse the decline in registered childminders supported by a national recruitment campaign, retention of the current workforce, clear pathways for professional development, and improved integration within the wider sector.

2)      Undertake a comprehensive and meaningful review of early years funding - ensuring fair and sustainable rates for all types of early years and childcare providers, including registered childminders, and streamlining complex systems for families to navigate.

3)      Ensure all families can access high quality and affordable early years and childcare that meets their needs and the needs of their children, with a particular focus on disadvantaged families and those of children with SEND.

1. The early years and childcare sector workforce challenges

The early years sector is facing continued issues around recruitment and retention of early years workers, which risks the quality and stability of provision. A recent report[1] found the turnover rate of staff in early years group-based provision was twice that of staff in school-based providers, and was particularly high for lower-qualified staff.

According to the Early Education and Childcare Coalition (of which Coram PACEY is a member) common reasons that practitioners leave their roles[2] include seeking better pay (42%), seeking more flexible work (17%), seeking better career opportunities (16%) and no longer wanting to work long hours (16%). In addition to inadequate early years funding rates that fail to meet delivery costs, rising energy, food and rent costs and recent announcements around employer National Insurance Contribution and increases to minimum wage place additional pressure on providers. These financial pressures must be addressed to support the early years workforce to continue to meet the needs of families and children.

We need to see meaningful action to invest in the workforce. We welcomed the proposal for a ‘professional register’ for the early years as committed in the Department for Education (DfE) ‘Best Start in Life’ strategy, if it is part of a wider government strategy to elevate the status and pay of the early years workforce. Any such register must be inclusive of the whole sector, including childminders and registered nannies, or risk further segregating the sector, and it should promote continuous professional development and raise standards.

Recommendation: A robust, long-term workforce strategy that encompasses all early years and childcare professionals - including registered childminders and nannies - to support a sustainable, respected and professionalised sector that reflects the communities it serves.

2. The childminder crisis

As highlighted in the Education Committee’s inquiry as well as the ‘Best Start in Life’ strategy, is the concerning decline in registered childminders. Ofsted provider level data[3] shows a downward trend from around 58,000 registered childminders in 2010 to just 25,300 today. At the current rate and without government intervention to slow the decline, just a small handful could remain by 2033[4] - severely limiting families’ ability to access this unique, flexible, and highly personalised form of care.

Why does this matter?

Childminders provide all the benefits of quality early education and childcare in terms of supporting child development and providing access to the workplace for many parents. They also offer flexible care and education which can be more responsive to individual children and their families’ specific needs, including those with SEND.

According to a recent report, around a third of parents struggle to find childcare that matches their working hours and needs[5]. One of the greatest economic benefits of childminders is that they offer flexible care that can be easily tailored to the working patterns of parents and wider families. For example, they were found to be the provider type most likely to be open year-round, including cover during the Christmas period and teacher training days, and being more likely to offer the full day provision (8-6pm)[6].

Childminder funding

DfE analysis of provider finances[7] highlights the considerable financial strain many childminders are under, with a lower income-to-cost ratio compared to other providers. Childminders earn on average 91p for every £1 incurred in costs (compared to £1.05 for other provider types). They are in a unique situation where despite being legally classed as self-employed, those who deliver publicly funded childcare are constrained by strict government terms around its delivery, and their business viability increasingly depends on government policy decisions, particularly in relation to the expanded childcare funded offer.

Early education funding rates are set using a formula based on statutory ratios for group-based settings, which do not reflect the lower ratios at which childminders operate. This makes childminders particularly vulnerable to the impact of the sharp drop in funding rates for a child aged three- or four- years old, when compared to the higher rates for children aged two and under.

Our recent polling[8] highlights this impact:

-          31% of childminders have restricted the number of funded places for three- and four-year-olds.

-          11% have stopped offering funded places for this age group altogether.

-          Almost half (46%) of childminders already charge extra for voluntary “consumables” or additional elements - such as food, nappies, or off-site activities - with a further 25% considering introducing these charges.

-          Many are cutting trips (40%), raising fees for non-funded children (38%), cutting activities (28%), asking families to provide items such as food, nappies or suncream (23%) or working longer hours (13%).

Recommendation: Coram PACEY is calling for an improved approach to calculate funding rates that reflects the ratios that childminders work at and better supports them to operate their business and support children of all ages.   

Funding for related children

A significant barrier that is unique to childminders is the rule that prevents them from claiming funding for children related to them. This restriction does not apply to individuals working in a nursery or pre-school or to childminders working in Wales. Other important forms of childcare support in England (such as Tax-Free Childcare and Universal Credit) do permit parents to use related childminders, as long as they are Ofsted-registered and providing for the child outside the child’s home.

The impact of this rule on childminders, children and families is significant:

-          It impacts around a quarter of childminders[9] and is the main reason many cite for leaving the profession.

-          Around one in five childminders[10] have seen related children moved to another setting in order to access early years funding, disrupting continuity of care for the child and the families’ preferences and needs.

-          The disruption is particularly felt by children with special educational needs and disabilities (SEND) who are unable to claim additional funding for SEND as it is directly linked to early years funding.

-          Nearly half of childminders choose to provide care for free at a detriment to their own income[11]

The government previously expressed concerns that this policy could be “misused” in some way but the childminder registration process and regulations are rigorous enough to prevent this. There is no evidence to suggest that this is happening in Wales since the rule was overturned in 2018, or in the context of other childcare support such as Tax-Free Childcare.

Recommendation: Funding should follow the child, not the other way round. We urge the government to permit childminders to claim funding for relatives (excluding their own children). This would support children and families to access childcare that suits their choice and needs, as well as support growth and retention of the childminding workforce.

Local authorities and inconsistencies

Local authorities interpret guidance set centrally by government and implement this for providers in their area. Too often, this leads to an unbalanced picture across the country with inconsistencies around approaches to early years funding, often without due consideration of providers’ income and budgeting. For example, only 65% of childminders told us they receive monthly payments from their local authority with the remainder receiving less frequent payments[12]. We hope to see monthly payments increase with the commitment within the Best Start in Life strategy that specifies all local authorities should offer this option. Directives need to go further - local planning, commercial waste and environmental health requirements also differ among different local authorities, leading to some childminders unfairly burdened, for example being required to purchase trade waste bins or requiring costly planning permissions.

Recommendation: Alongside stronger directives on local authorities regarding funding payments and schedules, we are calling for a joined-up, national approach on planning, commercial waste and environmental health requirements.

Childminder qualifications and professionalism

In January 2024, the government changed the Early years foundation stage (EYFS) framework to remove the legal requirement for childminders to complete formal and specific pre-registration training to understand and implement the EYFS. Meanwhile, childminders joining the Childcare Register are still required to undertake formal training, meaning the training requirements for over-fives appear more stringent than for early years children. Whilst the removal of this barrier was designed to ease the burden and requirements for newly registering childminders, it raises challenges around perceptions of quality and standards.

Recommendation: We are calling for the reinstatement of qualification requirements for childminders joining the Early Years Register to increase professionalism and align them with the wider sector.

3. The role of nannies

Nannies represent a significant yet often overlooked part of the childcare and early education workforce. Their roles are diverse and highly adaptable, but the sector is complicated by a lack of regulation. While some choose to register voluntarily with official bodies such as Ofsted (most commonly to allow parents to access Tax-Free Childcare, but also to demonstrate professionalism and increase parents trust) there is no consistent requirement or framework for training, qualifications or quality standards across this part of the workforce. Like childminders, nannies provide home-based, flexible, and often specialist care tailored to the needs of children and families. Their provision can be particularly valuable for families requiring one-to-one support, for children with SEND, or for parents working irregular or ad-hoc hours that do not align with traditional childcare settings.

In a recent Coram PACEY survey[13] 97% of nannies described their role as rewarding, and 81% intend to continue nannying as a long-term career, yet, 82% said they do not feel integrated into the wider early years sector.

Recommendation: Coram PACEY is calling for tighter regulation of nannies to improve professionalism, raise standards and quality and bring them more closely aligned with the wider education sector. Longer term, we would like to see the childcare funding offer expanded to include registered nannies alongside childminders and group-based settings.

4. Access and affordability for families

The early years and childcare system encompasses eight different complex funding streams that families must navigate. Poor communication and fragmented information leaves families unclear on what support is available to them.

Because funding is largely tied to parental employment, many children from non-working or low-income households miss out on provision. The Joseph Rowntree Foundation highlights that early education provision makes the biggest difference to disadvantaged families.[14] Yet analysis of the Government’s childcare expansion reveals inequalities in access and affordability for these groups. One report estimated that 85% of the wealthiest eligible households benefit from the full expansion of funded hours, compared with only 11% of the poorest[15].

The gap between families eligible for government childcare entitlements and those who are excluded from this support is wider than ever[16]. The financial impact is significant: families find themselves paying on average £205 per week for a child under two, and between £100-193 for a two-year-old.

Families of children with SEND and in areas of deprivation are also disproportionately affected by childcare access. Less than a third of local authorities reported having sufficient places for 75% of children with SEND, and only 4% for all children with SEND[17]. A 2023 report identified that “childcare deserts” with very low availability of provision are most likely to be located within the most deprived local authorities[18].

Recommendation: Ensure that all families can access high quality and affordable childcare that meets their needs, with a particular focus on disadvantaged families and those with children with SEND, where early support has the greatest impact.

Universal credit

We are particularly concerned about the interaction between Universal Credit and childcare funding. Many parents are having their claims rejected or reduced due to the inclusion of “additional” charges for items like food, nappies and other charges. This is despite these charges being included for families accessing support through Tax-Free Childcare. Meanwhile, we hear reports from registered childminders who are Universal Credit claimants themselves and - largely due to low funding rates - are told to increase their parent-paid hourly rate or take on more children (conflicting with ratio requirements) to ensure their businesses are “viable”. This misunderstanding and the interaction between Universal Credit and childcare funding leads to many claimants unfairly missing out, and childminders feeling they are unable to run their business with the autonomy that self-employed individuals in other sectors can. 

Recommendation: Reform the way Universal Credit interacts with childcare funding to ensure fairer support for claimants.

5. Policy consequences

We have seen a number of policy changes in the early years sector aiming to improve the system for childminders and other types of providers, but none to date have managed to address the rapid departure of so many from the sector. For example, only 27 childminders are registered under the newly-introduced category of “childminder without domestic premises”[19] and in our own polling just 4% of childminders said they spend any time working from non-domestic premises[20].

While the government’s proposal to include outdoor space in floor space requirements to increase the number of children in settings may be a favourable option for larger group settings, it will have little impact for childminders. 90% told us they were already full and working to maximum ratios, and most did not have outdoor space that would meet the proposed definition of “free-flow”[21].

Since many childminders care for both early years and school-aged children as part of their business model, policy developments affecting school-aged provision must also be considered. Coram PACEY worked with the DfE in encouraging local authorities to engage with childminders in the national wraparound childcare programme and breakfast club schemes, however concerns remain about how this is happening in practice. Five months after the launch of the national wraparound programme, only a quarter of childminders[22] told us they had received direct communications from their local authority about it and just seven childminders (less than 1%) had received any grant funding. Just 4% said they felt the wraparound and breakfast club schemes would have a positive impact on their business and 20% said they had lost business as a direct result of these offers, reporting that families have left their services to access cheaper or funded provision at an alternate setting.

Ofsted: Recent reforms, quality and outcomes

We welcomed Ofsted’s renewed approach to inspection and reporting and its constructive engagement with the sector throughout the development of the renewed framework. Ofsted plays a critical role in reporting on the quality of early education, and it is vital that its processes reflect the realities of different types of provision. The revised framework now takes better account of the unique context of providers, including registered childminders.

Childminders face distinct challenges, often working alone and delivering care within their own homes. For them, inspection judgements can feel intensely personal and a high contributor to stress. Early feedback from childminders who have taken part in test visits has been positive, with many describing the process as more collaborative and supportive. These reforms represent an important step forward and are likely to help reduce the number of providers leaving the sector due to concerns about inspection.

Recommendation: Ofsted should continue to monitor the impact of the revised framework on practitioner wellbeing, particularly for childminders, and that it continues to work in partnership with stakeholders and providers to refine inspection practice over time.

Conclusion

In summary, the early years and childcare sector is held up by the dedicated professionals who work in it - putting up with low pay, a lack of respect and value because they are passionate about putting children first and giving them the best start.

To ensure a sustainable, high-quality system that works for families and children, the Committee should call on government for:

-          A national strategy for childminding.

-          A comprehensive and meaningful review of early years funding, ensuring fair and sustainable rates for all types of providers.

-          All families to have access to high quality and affordable childcare that meets their needs, with a particular focus on those disadvantaged families and those with children with SEND.

This requires vision, long-term investment, and determination but the rewards for children, families, and the wider economy will be immeasurable.

November 2025