Expanding childcare provision in London

Childcare in London remains more expensive than in any other part of the country and the take-up of the Government’s current 15 hour entitlement in London is below the national average.

Parents in London generally require more hours of childcare due to longer commute times, a lack of informal care provided by family members and the increasing number of jobs with evening and weekend hours.

The Government will be increasing the free commitment from 15 hours to 30 hours for many parents from 2017. So will the extension help in London?

The London Assembly Economy Committee has written to the Secretary of State for Education, Nicky Morgan, about expanding childcare provision in London.

The letter makes the following recommendations:

• The Government must ensure that providers of free childcare in London are properly reimbursed. Previously, the Government has not provided sufficient funding to cover the market cost of childcare in London and much of the sector has developed a funding model, where providers effectively cross-subsidise the Government’s commitment by charging parents at a higher rate for additional hours. The 30 hour extension could further exacerbate the financial position of providers and they may close their doors or switch to a private model.
• The Government should look at ways to increase the number of high quality childminders in London and target training and support to help childminders become OFSTED registered.
• The Government should encourage more schools to establish nurseries, given that most of the spare capacity in London exists in schools.
• The Government should consider devolving more powers to London government to set childcare policy and control funding, in order to ensure local knowledge can be better used to improve local services.

The letter is available to download below.