Two approaches to improving access to affordable high-quality
childcare Kayte Lawton, 27 th February 2013 Children England Annual
Conference
Slide 2
Content The problems with childcare in the UK Explanations
Market-based solutions Public service-based solutions Lessons for
the UK
Slide 3
The problem with childcare in the UK Relatively expensive for
parents and the state Relatively under-qualified and low-paid
workforce impact on quality Relatively weak profits /
surpluses
Slide 4
What explains these weaknesses? Regulation? Ratios,
childminders etc. More centralised but not uniformly more
burdensome Typically focused on a narrow set of issues Slightly
more restrictive ratios in some cases Reliance on cash benefits
rather than services Public funding not spread evenly across
families Complexity of funding arrangements
Slide 5
Cash vs services in family spending
Slide 6
Market-based solutions Demand-side funding tax relief,
vouchers, tax credits Deregulation less restrictive ratios, less
regulation of childminders Most OECD countries opt mostly to
directly fund providers Except the US, Canada, the Netherlands and
Australia
Slide 7
Governments proposals Workforce status and quality More places
in high-quality settings Childminding agencies Changes to
regulatory framework Plus - tax relief or vouchers, more support
through Universal Credit?
Slide 8
Market solutions in the Netherlands Large growth in places,
esp. childminders Low costs to parents employers pay one third of
fees Massive deadweight costs Bureaucratic funding system Quality
appears to have fallen in some settings Provision falled in less
densely population and more disadvantaged areas
Slide 9
Key questions for the UK Would market-based solutions and
deregulation: Reduce costs to parents? Improve quality? Improve
choice and the number of places? Affect parents confidence in the
system?
Slide 10
An alternative model: Denmark The offer to parents National
entitlement to full-time childcare from 6 months to six
Municipalities ensure availability of places Cost to parents is
capped at 25% of unit cost Very high take-up
Slide 11
Governance and quality National objectives rather than strict
regulation Local governance and accountability Provider autonomy
Strong parental involvement Highly skilled workforce
Slide 12
Wider welfare state and labour market Generous parental leave
Universal child benefit, but frontloaded High replacement rates for
out-of-work benefits Strong conditionality No equivalent of tax
credits Widespread collective bargaining High levels of public
sector employment
Slide 13
Lessons for the UK Affordability: national, comprehensive
entitlement / single system of supply-side funding / capped
parental fees Quality: high-quality workforce over statutory
regulation / decentralised organisation and governance / parental
involvement Broader package: services not benefits / parental leave
/ flexible working / political consensus / broad alliances
Slide 14
What next? We know roughly where we want to get to how do we
start making progress? How to achieve the right balance of quality,
affordability, gender equality with limited public money What
governance reforms are needed? Where do we have to make trade-offs,
both within childcare and in other spending areas?