Ryan FowlerThe National Audit Office (NAO) has issued a report indicating significant challenges in the government’s rollout of new early years entitlements aimed at increasing labour market participation. The Department for Education (DfE) is currently on track with its initial April 2024 milestone but faces difficulties in achieving future targets due to uncertainties in sector capacity and staffing.
As of 17 April, codes for funded places have been issued for 246,833 children, with 195,355 (79%) validated, and expectations set for this to rise to around 85%. The DfE needs approximately 85,000 new places by September 2025, a target that has been described as ‘problematic’ given the current uncertainties. A survey in March 2024 found that only one third of local authorities were confident about meeting the upcoming milestones.
Introduced in the March 2023 Budget, the program faced restrictions that prevented prior consultation with the early years sector. This, according to the NAO, has led to significant uncertainties regarding the capacities and capabilities of local providers.
The DfE has responded by increasing hourly funding rates and adjusting regulatory requirements, such as reducing the staff-to-child ratio for two-year-olds to 1:5. Despite these efforts, staffing remains a major challenge, necessitating a national recruitment drive and financial incentives to attract the 40,000 additional staff needed by September 2025.
Gareth Davies, head of the NAO, emphasised the need for careful monitoring and responsiveness to emerging risks: “The next phase of the reforms will be significantly more challenging, with little contingency and flexibility in its ambitious timetable. The Department must monitor the programme closely and respond promptly to emerging risks.”
