A year into the economic downturn, the vestige of stability isdisappearing - and it seems less certain that the Government willcontinue its decade-long practice of ploughing money into early yearsand childcare initiatives.
It has already been a turbulent 12 months for the industry, with itsbiggest operator, the Australia-based ABC Learning, humbled by growingdebts and forced to sell off large chunks of its business.
Crystal-ball gazing at a time of such economic upheaval may provefruitless. Who knows what havoc the current crisis afflicting thebanking sector will wreak in the long term? Tightening household budgetsmight mean a dip in demand for childcare in some quarters, but somebelieve that demand will actually pick up as women return early frommaternity leave and extend their working hours to shore up the familyfinances.
What is clear is that the industry faces major challenges - includingthose related to pay, affordability, quality, training, the Early YearsFoundation Stage (EYFS) and a new inspection regime - and providers andpractitioners will still have to confront them, whatever the economicconditions.
The recently published Childcare and Early Years Providers Survey 2007presents a highly contradictory picture of the industry. For example,there are more and better qualified staff, but pay levels remain, formany, scandalously low; the number of providers and childcare placescontinues to rise, but fewer than a third of full daycare providers aremaking a surplus (down from 43 per cent in 2003), and 52 per cent ofprovision in children's centres is loss-making.
The thirst for more and better trained staff has been evident for years,and the proportion of full daycare staff with a level 3 qualificationrose sharply between 2003 and 2006 - from 52 to 64 per cent - but dippedby 3 per cent in 2007.
The proportion of childminders reaching level 3 went up from 33 to 36per cent between 2006 and 2007, but Ofsted's latest report found thatthe proportion of inadequate childminding rose from 2 to 6 per cent,with childminders achieving a good level of care slipping from 62 to 54per cent.
The clamour for training did not lead to a stampede of applications forthe now-replaced Transformation Fund, indicating to the Government thatit needs to make the process less complex and the urgently needed fundsmore easily accessible.
The Government's survey also reveals the contradictions at the heart ofits planned policy to extend free early years education in terms ofhours and age (Gordon Brown wants to provide it for two-year-olds). Manyproviders fear for the sustainability of their businesses because largenumbers of low-income families use formal childcare only when accessingtheir nursery education entitlement. This means providers are losingmore money because of unfilled places.
So, opportunities and challenges lie ahead for providers andpractitioners. Below, six industry experts give their views.
FREE ENTITLEMENT - Anne-Marie True
Principal and proprietor of Barnes Montessori Nursery in south westLondon, and London co-ordinator for the Montessori Early Years Forum
According to Ms True, feedback from nursery providers in areas that havepiloted the extension of free entitlement to 15 hours shows that thepractice is unsustainable.
She explains, 'The Department for Children, Schools and Families hasjust told local authorities to sort out the single funding - to sort outthe problem. There will be a lack of choice because people are having topull out of the funding scheme.
'The discrepancy between the maintained and the private, voluntary andindependent (PVI) sector remains. Local authorities are working on asingle funding formula, but one size does not fit all. Every providerhas different criteria, whether it rents premises in a community hall orowns bricks and mortar.'
Ms True says the Government's approach to nursery education funding forPVI providers is 'like asking a five-star hotel to charge two-starrates'. She adds, 'It's intrusion, state intervention and back to pricecontrols which simply don't work. Unless they stop this, and there is aU-turn by Beverley Hughes, which I don't think will happen, I will haveto pull out of the scheme, and I know others in my area who feel exactlythe same.
'By pulling out, I know I am denying parents that choice. But when Iasked parents if they will still come to my nursery if there is noeducation funding, 99 per cent said yes.
'The Save Our Nurseries campaign is ongoing and we have had lots ofmeetings with the Local Government Association, which is aware that thisis a serious problem. More and more representatives from different areasare attending meetings, showing that the problem is not localised.'
PAY - Purnima Tanuku, Chief executive of the National Day NurseriesAssociation
'Pay is a real issue in the sector at the moment. With 80 per cent offees going on staff salaries, nurseries do not have much room tomanoeuvre,' says Ms Tanuku.
She believes that pay must be seen as part of a wider picture andconsidered alongside training, sustainability and other investment.Recruitment also remains a big issue, and she warns that action on payis urgent because 'it's difficult for nurseries to keep staff as thereare other, better-paid jobs elsewhere'.
Ms Tanuku says, 'One would assume that the pay gap would narrow as timegoes by, but it doesn't. This is because while pay goes up every year inthe maintained sector, in the PVI sector it is affected by what nurserybusinesses can afford, and of course what parents can afford in thecontext of the downturn.'
The Childcare and Early Years Providers Survey showed that other staffin graduate-led settings have had their pay increased, but Ms Tanukuwarns that while such rises are well deserved, they put additionalpressure on nurseries.
She believes that the pressure on resources in the PVI sector might beeased if local authorities made clear how funds supposedly availableunder the Children's Plan would be allocated.
Ms Tanuku concludes, 'The number of qualified staff is rising and that'swhat the Government and we want, but we have to reward peopleaccordingly. The whole point of EYPS and better training is to retainstaff in the early years sector, and we won't do that without addressingpay.'
EARLY YEARS PROFESSIONAL STATUS - Jennifer Colloby, Senior lecturer atthe Open University, and lead academic for the Early Years Professionalprogramme
Ms Colloby says that Early Years Professional Status (EYPS) is broadlywelcomed in the sector 'as a means of raising standards', but thefull-time, fast-track route is causing some resentment among othernursery staff. She explains, 'It's not the role itself that is under anyquestion. It's the full-time training pathway that is causingconcern.'
The Children's Workforce Development Council created this route toattract graduates from outside the early years sector.
Ms Colloby says, 'People simply don't like the fact that somebody withabsolutely no experience of working in an early years setting, withchildren from birth to age five, can within a year not only be aneffective practitioner, but lead and support others in the practice anddelivery of the Early Years Foundation Stage. That's what's causing thegrievance.'
The Open University has been unable to fill all its allocated places onthe full-time training pathway and there is talk of it being extendedfrom one to two years.
'I think they should be targeting those practitioners who are at themoment working towards a recognised foundation degree before taking afull degree and then EYPS,' Ms Colloby adds.
The absence of a proper salary structure for EYPS is also a concern. MsColloby says, 'It was a mistake to talk about it being the equivalent ofPost-Graduate Certification in Education or qualified teacher status,because teachers in England and Wales have a recognised salarystructure, whereas for those with EYPS in the PVI sector, their salaryis dependent on the setting.'
TRAINING - James Hempsall, Hempsall Consultancies
Mr Hempsall says the Children's Plan places new expectations on allprofessionals to develop fresh approaches to working with children andparents. 'Training is an important mechanism for facilitating change,'he states. 'However, training needs to be supported with budgets andopportunities to further develop multi-disciplinary working.
'There is a tremendous need for leadership and management training atall levels and in all organisations working with children. The planprovides a real ambition to support us all to be holistic or pedagogicalpractitioners.'
Mr Hempsall adds, 'This is a long-awaited stimulus for many and a majorshift for some. I sometimes think we are not ambitious enough when itcomes to wanting to change education in this way. It is not easy toachieve because resources - as well as a change of culture - arerequired to make this happen.
'Training needs to ensure that the new goals for working with childrenfrom birth to age two are achieved. This cannot, and should not, be donein isolation from parents, so training opportunities for parents andpractitioners to train and learn together are essential. This issomething that Early Support has been successful at.
'But parents' training must not be merely termed "parenting skills" andsurrounded by a culture of "failure", in that they only attend suchtraining when we, as practitioners, are perceived to deem them to beinadequate. Instead, parents' training should be delivered in a valueframework of inclusion, partnership and positivity for the benefit ofchildren and their families.'
INSPECTIONS UNDER THE EARLY YEARS FOUNDATION STAGE - Laura Henry,Director of Childcare Consultancy
Ms Henry believes that inspections under the EYFS should be conductedannually regardless of the inspection judgement. She says, 'Iwholeheartedly agree with inspections, they are an important process toensure every child is achieving their full potential under the EveryChild Matters outcomes.
'Self-evaluation is important and ensures that every setting can reflecton the service they provide, for example highlighting positives andareas in need of development. If carried out robustly, self-evaluationcan raise the quality within settings.'
Ms Henry says that settings should receive adequate training from theirlocal authority so that they understand the inspection process. TheChildcare Consultancy provides this training, and carries out mock-upinspection visits so settings and staff alike are well prepared, whichis important as they do not receive any notice of real inspections.
Ms Henry argues that until the first group of inspections has takenplace under the EYFS, it will not really be possible to evaluate howwell it is working.
But she believes that settings which already carry out a 'robust reviewof everything they do' will be most comfortable withself-evaluation.
'Those who have participated in quality assurance schemes will be wellplaced to gain most from the process, and other settings which have notdone this work will need support from their local authority,' Ms Henrysays.
IMPLEMENTING THE EYFS - Geethika Jayatilaka, Deputy chief executive of 4Children
Ms Jayatilaka is keen to emphasise that the EYFS is 'all about spreadingbest practice across the board', and says the challenge is for providersto meet its requirements, and local authorities should help them dothis.
She believes that many providers are already meeting their obligations,but that there are concerns within the PVI sector about training.
Ms Jayatilaka insists that 'the challenge around training and resourcesneeds to be taken up by local authorities', and that the PVI sector, notjust the statutory sector, must be seen to benefit. But she adds, 'Thearrival of the EYFS is a good thing and we are supportive of it. Butthere will need to be tweaks and a look at how it is working inpractice, and this is the opportunity to do that.
'Much of the information in the EYFS will be familiar to providers, butof course it will be easier for some settings to adopt than others. Oneway to help facilitate a smooth transition is to designate one worker tobe responsible for attending training courses and who can then spreadtheir knowledge and learning among their colleagues.'
