CHILD

Major changes to childcare announced in the Spring Budget

Last modified on Wednesday 15 March 2023

Childcare reforms were a big focus in the Spring Budget on 15 March, in a move designed to reduce nursery costs and help more parents get back into work or increase their hours

Chancellor Jeremy Hunt announced a major childcare shake-up in the Spring Budget on Wednesday 15 March, as part of new reforms that will make childcare more 'flexible and affordable' for parents.

The government made childcare a major focus of the budget, to help cut costs for parents and help more get back to work.

Alongside 30 hours free pre-school childcare for children aged 9 months and above and greater access to wraparound care for school-aged children, one change was an 'optional' update to the ratio of children to staff in nurseries.

The Government will change minimum staff-to-child ratios from 1:4 to 1:5 for 2 year olds in England but make it 'optional', the Chancellor said, as he announced an increase in funding for nurseries.

This could reduce childcare costs because nurseries will have more income per staff member. The move should see families save £40 per week, or £480 per year, reports The Sun .

What are the new childcare ratio rules?

As part of the Spring Budget, Mr Hunt announced that the amount of children looked after by each nursery worker will increase. Although he added that this will be 'optional' and childcare providers will be able to decide.

The relaxed ratios will be introduced in September 2023, subject to parliamentary procedure.

It means that a nursery worker who currently looks after 4 children aged 2 can be responsible for 5 children, bringing England in line with Scotland.

What are the current rules around childcare ratios?

The ratios refer to qualified staff and the number of children they are allowed to supervise.

Currently in England the ratios for nurseries are:

  • Under 2s: 1 adult for every 3 children
  • Aged 2: 1 adult for every 4 children
  • Aged 3 and over: 1 qualified adult for every 13 children or 1 unqualified adult for every 8 children

In Wales, the ratios for nurseries are as follows:

  • Under 2s: 1 adult for every 3 children
  • Aged 2: 1 adult for every 4 children
  • Aged 3-7: 1 adult for every 8 children
  • Aged 8-12: 1 adult for every 10 children

In Scotland, the ratios for nurseries are:

  • Under 2s: 1 adult for every 3 children
  • Aged 2: 1 adult for every 5 children
  • Aged 3-8: 1 adult for every 8 children (in settings where children attend for fewer than 4 hours in any one day, the adult to child ratio can be 1 adult for every 10 children)
  • Aged 8 and over: 1 adult for every 10 children

Meanwhile, in Northern Ireland, the childcare ratio is:

  • Under 2s: 1 adult for every 3 children
  • Aged 2: 1 adult for every 4 children
  • Aged 3-12: 1 adult for every 8 children

Ratios may change depending on the needs of the child or children in the setting , according to the government.

How do childcare ratio rules affect children?

Some parents are concerned about the ratio changes, saying it could affect the safety of their children and the quality of the childcare they will receive.

Although some studies show that lower child-to-staff ratios are associated with improved learning outcomes, other studies have not found such links . Research also points to other factors that play into good outcomes, with factors ranging from adequate indoor space for play and napping to staff professional development.

'Childcare at centre of Spring Budget'

In the Spring Budget the Chancellor also offered low-income families 50% more help with childcare costs. Hunt increased childcare payments for families on Universal Credit (UC) , in an attempt to help with the cost of living.

  • Universal Credit childcare amounts to increase – The amount that parents on UC can claim back on childcare will rise from £646 for a single child to £951 (£304 more per month) and from £1,108 for two children to £1,630 (£522 more per month) . This will be the first increase for almost two decades.
  • Upfront help – The government will also offer upfront childcare payments to poorer families, rather than asking them to make claims in arrears. It's hoped that by doing this, more families will be able to make claims.
  • Extending childcare to younger children – The Chancellor is also extending the 30 free hours of childcare in term time to working parents with pre-school children aged 9 months and above. It's currently only offered to eligible parents of 3 and 4 year olds. This is the first time babies have been included in any sort of free childcare scheme and is designed to get women back to work.

One-off £600 payment to nursery staff

To encourage workers into the childcare sector, the government also announced a £600 one-off sign up bonus to childcare workers in the budget.

The £600 bonus will be offered – as part of a pilot scheme – to people to encourage them to become childcare workers.

It comes as many childcare settings said they had problems finding employees and filling roles.

Read more about childcare ratios or chat about nurseries in our Forum below.

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