Expert warns MPs of private risk to childcare plan

She told the House of Commons Education Committee of the dangers of private-for-profit companies taking advantage of the Government’s proposed reforms to the childcare market.

Professor Lloyd warned against an influx of private, for-profit childcare providers with no background in childcare, following on from announcements  to expand 30 free childcare hours by September 2025  to all children aged 9 months to 5 years whose parents meet certain employment criteria.

Professor Lloyd, director of the International Centre for the Study of the Mixed Economy of Childcare at UEL, was speaking at the select committee oral evidence session on April 18 following on from announcements made in Chancellor Jeremy Hunt’s spring budget in March 2023.

Professor Lloyd said that the proposals are very exciting but questioned  where the staff would come from.

Core funding is key. We cannot expect employers to pay decent wages and improve the working conditions of the childcare workforce through these subsidies being paid on a per capita basis. There are doubts, anyway, around the amount of money that will be made available for the three- and four-year-olds.

Providers are struggling with a lack of income, and the workforce is reaching the end of the road. They are leaving in droves. There has been an enormous reduction in well-qualified people working in the sector.

“There will be an influx of private providers, many of whom do not have a background in childcare and early education. It always happens when substantial public money comes into a system. It’s understandable but it has got to be managed.”

Professor Lloyd urged the government to invest more money in early education and childcare provision to boost its crucial role for society, communities and the economy. She also expressed concern that the plans would fail because they are only focused on relieving parental costs, rather than including a focus on the children themselves and addressing the current workforce crisis.

See more of Prof Lloyd's views: Statement on childcare reforms in budget.

Watch the Education Committee.