During a debate with MPs last week, Ms Ford said that the extra £44m in early years funding announced at the spending review ‘will pay for a rate increase that is higher than the cost that nurseries may face from the uplift to the national living wage in April’.
However, a recent parliamentary question response from Ms Ford states that the Department for Education do not have data on the proportion of the early years workforce who are aged 23 and 24.
The increase in the national living wage, announced by the chancellor in last month's spending review, comes into effect next April, and was accompanied by an extension of the wage to all workers aged 23 and over.
As of April 2021, the national living wage will be extended to include 23 -and 24-year-olds for the first time, as well as increasing from £8.72 to £8.91.
The £44m in extra early years funding, due to come into effect in April 2021, equates to a 1.2 per cent increase for the sector, while the national living wage for workers aged 23 and over is increasing by 2.2 per cent.
The Early Years Alliance has called for urgent clarity on the minister's claim that a planned increase in early years funding will more than cover the cost to childcare providers of the national living wage (NLW) rise, after it emerged that the Government does not know how many early years staff will be eligible for the NLW from April.
In response to a written parliamentary question from shadow children and early years minister Tulip Siddiq, which asked what proportion of the early years workforce the DfE estimates is aged 23- to- 24-years-old, Ms Ford admitted that the Department did not know how many early years staff fell into that age bracket.
She stated, ’Data for early years staff aged 23 to 24 is not available because the data is banded into age groups’ and that the Department could only provide data on early years staff aged between 21- to 24- years-old.
The Early Years Alliance has written to the children and families minister to ask for the details of the computation underpinning her statement.
Neil Leitch, chief executive of the Early Years Alliance, questioned how it was possible for the DfE to claim that‘this small rise in early years funding will cover the cost of the upcoming national living wage increase when it doesn't even know what proportion of the workforce will be eligible for that increase’.
‘Time and time again, we see the Government claim that the funding that the sector receives is more than enough to cover rising costs, when the figures simply don't stack up,’ he said. ‘If the DfE want to claim that a 1 per cent increase in funding is more than enough to meet the rising cost of wages, then it needs to have the data to back this up.
‘At a time when so many nurseries, pre-schools and childminders are hanging on by their fingernails, any discussions around sufficiency of funding need to be accurate and transparent. As such, we look forward to the DfE publishing the details of the calculation they have based this claim on shortly.’
The National Day Nurseries Association tweeted that it would be asking the DfE ‘to show its working out when the rates are published.’
Early years providers were also sceptical of the claims.
On Twitter, Catherine @C1Catherine, said, ‘What about compulsory pensions, monthly tax bill, rent, business rates etc!! Come into a setting minister! Pay us a visit! And see the real picture. Then say we can manage!’
Hannah Holdgate said, ‘The Early Years is massively under funded and staff working in Early Years under paid and under valued. The living wage (if the money even covers that) is insulting to the people we trust to look after, care for and educate our youngest children.’
KT Thompson said, ‘Basic spreadsheet maths suggests this is is not possible not to mention all the other cost rises, Covid cleaning costs, Covid staff cover etc’.
David Wright @Mr_PaintPots said, ‘I have a degree in economics, perhaps I should volunteer my services to assist with calculating funding rate increases?...
‘Are we allowed to ask to see her workings out? Did she use a calculator and is there a possibility that she got the decimal point in the wrong place?’
@JamesEYFS said, ‘Let's throw into the mix the added cost of covid. None of these vaccines are suitable for use with under 16s so we have a long costly slog ahead of us with that.’
Asked for further comment, a DfE spokesperson said, 'Nurseries, preschools and childminders have received significant financial support over the past months and we will invest £44 million for early years in 2021-22, to increase the hourly rate paid to childcare providers for the government’s free hours offers. This is an above inflation average hourly funding rate uplift for 3-4 year-olds and 2 year-olds, compared to 20-21.
'Term time attendance has been rising as more parents return to work and is now at approximately 90 per cent of the usual daily level before coronavirus. To ensure we respond appropriately to the pandemic, we are keeping our plans for the funding of spring term 2021 under close review and further details will be announced as soon as possible.'
