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Isle of Wight Council CHILDREN’S SERVICES CHILDCARE SUFFICENCY ASSESSMENT 2014 - 2017
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  • Isle of Wight Council

    CHILDREN’S SERVICES CHILDCARE SUFFICENCY ASSESSMENT 2014 - 2017

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    2

    Document Information

    Title: Children’s Services Childcare Sufficiency Assessment

    Status: Final

    Current Version: V1

    Author: Gillian Pink, Childcare Sufficiency Officer, Learnin & Development,

    Children’s Services Directorate

    [email protected]

    (01983) 823153 – (01983) 821000 - 8414

    Sponsor: John Coughlan CBE, Director of Children’s Services

    Children’s Services Directorate

    [email protected]

    (01983) 821000

    Consultation: 1nd March 2015 - 17th May 2015

    Pre-schools Schools including parents o Via Questionnaire to parents

    Family Information Zone

    Approved by: Director of Children’s Services

    Approval Date:

    Review Frequency:

    Refreshed every one year

    Next Review: June 2016

    Version History

    Version Date Description

    V1 3 June 2015 Initial draft

    V2 14. July 2015 Final draft

    V3 30 July 2015 Final

    mailto:[email protected]:[email protected]

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    3

    Contents

    Document Information 2

    Contents 3

    1 Executive Summary 4

    2 Introduction 6

    3 What is Childcare 6

    4 Local Context 7

    5 Population - Demography 9

    6 The Welfare Reform agenda and links with Childcare 10

    7 Quality of Provision 18

    8 Overview of Isle of Eight Early Years & Childcare Market

    18

    9 Early Years Education – Funding Trends 23

    10 Average Childcare Costs 26

    11 Provider Sustainability and Demand Trends 17

    12 Growth of Places 20

    Summary

    Appendix 1: Provider list

    Appendix 2 Indices of Multiple Deprivation

    Appendix 3 Early Years Single Funding Formula Factors

    Appendix 4 Help with childcare costs

    Appendix 5 Locality Map

    Vision Statement – Recommendation for Action Plan

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    4

    1. Executive Summary

    The Childcare Act 2006 gives the Local Authority a key role in shaping the childcare market

    and the Isle of Wight County Council has been committed to working with providers from the

    Private, Voluntary and Independent Sectors (PVI) and the maintained sector, to create a

    strong, sustainable and diverse childcare market that meets the needs of parents/carers.

    Local Authorities are required under the Act; Section 6 to ensure that there is sufficient,

    quality, flexible, sustainable childcare and for parents and carers. The Act also places a duty

    on the local authority to report on the sufficiency and provision of early year’s education.

    This assessment analyses the demographic and population data available and

    provides an up-date on the authorities’ current ability to meet its sufficiency duty and

    considers the impact legislative changes are having on the demand for childcare.

    The assessment confirms that provision of Early Years and Childcare on the Isle of

    Wight is flexible and reflects changing need in relation to the continued social

    economic profile.

    Key findings are:

    a) The childcare market across the Isle of Wight has increased by 353 places since the

    2011 Childcare Sufficiency assessment with the number of Day-care providers’

    remaining relatively stable and sustainable within the three locality areas. Although

    fluctuation has occurred within the sector with day-care provisions changing

    registration status the average number of day care provision providing Early Years

    funded placements on the Island has remained comparable during and since the

    school re-organisation process.

    b) The 'Mid 2013 population estimate' shows the population of children across the Isle of

    Wight 0-4 have increased by 2.2 % since 2012 estimate. Population estimates

    indicate the 0-4 population reaches its peak in 2016 declines steadily until 2033 when

    it begins to increase. Live Birth data is currently lower than population estimates.

    c) The proportion of pensioners on the Isle of Wight remains higher than other parts of

    the county according to the latest (Census Mid estimate 2013), and is estimated to

    continue to grow.

    d) Capacity growth against predicted 0-4 population statistics would indicate that overall

    sufficient places are available to cover expected growth. However, capacity may

    become an issue when the governments’ plans to introduce 30 hours of provision for

    working parents are implemented by 2017. The Local authority would be heavily

    reliant on schools and the Private and Voluntary sector to expand their services to

    cover early year’s age range or the PVI sector expanding their businesses. Currently

    it is not possible to estimate additional demand as the 30 hour offer has not yet been

    defined. However we are aware that parents are not traditionally taking up their full

    entitlement, therefore future exploration for reasons behind low take up will take

    place.

    e) The assessment has identified, one local town within the North East Locality as

    providing insufficient early education places within local vicinity, although sufficient

    http://www.ons.gov.uk/ons/rel/sape/small-area-population-estimates/mid-2013/index.html

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    5

    places are available within the Early Help locality, these are not within walking

    distance of parents. Plans are in place to address this issue and Capital funding

    agreed.

    f) During the last twelve months 2 year old capacity has increased with 350 new

    childcare places being developed through the Government’s incentive capital grant

    funding to accommodate the overall demand across the Island.

    g) The number of 2 year olds accessing Early Years Education Entitlement has

    increased, and currently stands at 71.5%, against the latest Department of Work &

    Pension eligibility figures, higher than the National average 62.6% and the South

    East region average of 67.5%. £10,000 has been allocated to continue the marketing

    programme to augment take-up. This includes:

    i. Island wide Radio Campaign

    ii. Information Posters/Leaflets & Business cards

    iii. Facebook

    iv. Local Media – adverts in Rainbow Directory/Beacon/County Press

    [inclusive of web-tile links on associated sites]

    v. Webpage

    vi. Direct targeting of parents on DWP lists

    - In the meantime, brokerage of places is supported through the Family

    Information Service.

    - The overall quality of early year’s providers is being maintained 87% being

    rated by Ofsted as Good or Outstanding.

    - The availability of childcare places has increased over the last twelve months

    with further capacity expected by January 2016.

    - The number of childminders offering funded placements has increased by

    80% over the last twelve months.

    h) The Isle of Wight is also actively increasing awareness of both the funding

    entitlement of three and four year olds. This is being achieved through the Early

    Years Sufficiency team, the Family Information Zone, Health visitors, Barnardo’s

    Early Help Centres, local authority website, radio campaign and providers raising

    parental awareness.

    i) Further analysis of the childcare market planned will continue to ensure demand

    continue to meet needs.

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    6

    2. Introduction 2.1.1 To report to the Isle of Wight Select Committee on the outcomes of the Childcare

    Sufficiency Assessment 2014 – 2015, including the finding from consultation with parents/carers.

    2.1.2 The Childcare Act 2006 requires local authorities to improve outcomes for all young

    children, reduce inequalities and ensure there is sufficient high quality early ears provision and childcare meets needs.

    2.1.3 From April 2008, section 6 of the Childcare Act placed a duty on Local authorities to secure sufficient childcare, so far as reasonably; to enable parents/carers to access employment or training. Section 11 provides a duty for Local authorities to assess

    The supply and demand for childcare and develop a strategy that meets identified needs.

    2.1.4 Under new statutory guidance (September 2013) Local authorities are no longer required to present their sufficiency assessment to the Secretary of State, but are required to report annually to elect council members on how they are meeting their duty to secure sufficient childcare and make this report available and accessible to parents.

    2.1.5 Local authorities are responsible for determining the appropriate level of detail in their report, geographical division and date of publication. The Isle of Wight Council published its last Childcare Sufficiency Assessment in 2010 and undertook a mini review in 2012.

    2.1.6 This report provides an up to date assessment of the supply and demand of childcare within the Isle of Wight and processes future actions.

    3. What is Childcare?

    Childcare is defined in Section

    18 of the Act “as any form of

    care for a child”, including

    “education … and any other

    supervised activity”.

    In the Childcare Act 2006, ‘Early Years Provision’ means childcare for a child aged

    from birth until 31st August following the child’s 5th birthday and ‘Later Years Provision’

    means childcare for a child from 1st September following the child’s 5th birthday until the

    child reaches 18. (See sections 20 & 96 (6) of the Act.) Childcare includes some

    ‘supervised’ activities for under 18 year olds. This may overlap with local authorities’

    duties under section 507B of the Education Act 1996, to secure sufficient leisure

    activities’ for 13-19 year olds.

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    7

    3.1.1 Ofsted1 [Office for Standards in Education] registered childcare is paid for by parents

    and is in addition to the free early years education entitlement for 2/3 and 4 year olds.

    The local authorities’ sufficiency duty refers to both types of provision. Local

    authorities are required by legislation to secure early education places offering 570

    hours, from providers registered on the Ofsted Early Years Register.

    3.1.2 The Childcare Act 2006, Section 7 establishes that all Local Authorities must secure

    sufficient free early years provision for all eligible children. All three and four year

    olds are entitled to up to 15 hours per week of free early years provision, up to a

    maximum of 570 hours per year from the start of term following the child’s third

    birthday until the child starts statutory schooling. In September 2013 this was

    extended to provide free early years education to 20% disadvantaged two year olds

    and increased in September 2014 to 40%.

    3.1.3 Local Authorities must have regard to the ‘2Early Education and Childcare Statutory

    Guidance for local authorities’ when discharging sufficiency duty.

    3.1.4 If challenged, a local authority may be called upon to demonstrate how it has done all

    that it can to secure sufficiency, taking into account these constraints.

    4. Local Context

    4.1.1 The Isle of Wight is situated within the South East Region of Great Britain and covers

    an area of 45 square miles. An estimated population of 138,748 was identified at the

    last census (mid-estimate 2013) with 6, 605 children (aged 0 – 4) forming 4.77 % of the

    islands population.

    4.1.2 This review measures the childcare market and tests whether the supply and childcare

    places across the Island are sufficient to meet the demands from parents in each Isle

    of Wight Early Help locality. There have been substantial changes across both local

    and national local authority services within the last three years which have impacted on

    the Early Years and Childcare sector.

    4.1.3 The Isle of Wight Council published its last annual Childcare Sufficiency review in

    March 2012 following a full childcare sufficiency assessment in 2011. Since that time

    the Island has undergone a period of substantial change within the school sector

    moving from a 3 tier system (primary, middle & high) to a two tier system (primary and

    secondary).

    4.1.4 Part of the Isle of Wight Council’s overall approach to regeneration was to raise the

    standards of educational attainment and opportunity on the Island. This directly

    impacted upon the childcare provision on the Island, 66.6% of the island private and

    voluntary provision is based within primary school sites. As a result of the change

    many schools and their attached pre-school moved sites or were amalgamated. This

    resulted in a period of influx across the Island with childcare providers having to re-

    structure and re-register their childcare provisions to re-establish their childcare

    businesses into the facilities available to them.

    1 Ofsted - GOV.UK 2 Statutory guidance - Early education and childcare

    https://www.gov.uk/government/organisations/ofstedhttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/351592/early_education_and_childcare_statutory_guidance_2014.pdf

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    8

    4.1.5 Although Fluctuation has occurred within the sector with day-care provisions changing

    registration status the average number of day care provision providing Early Years

    funded placements on the Island has remained relatively stable during and since the

    school re-organisation process.

    5. Population “Demography”

    5.1.1 Local data has been drawn from a number of sources to provide an overview of the

    Isle of Wight in terms of population, live birth data, demographics, economic factors,

    housing and regeneration. Data from different sources have been drawn from

    different time periods and may not therefore be directly comparable but combine is

    illustrative of the local profile across the Isle of Wight.

    5.1.2 To effectively measure sufficiency we must consider population levels and the number

    of people living or travelling across the island who may require childcare. Following an

    upward trend the ONS Mid-2013 3population estimates, the proportion of pensioners

    on the Isle of Wight remains far higher than other parts of the country as first identified

    through the 2011 Census. The ONS indicates the number of ‘usual residents’ rose

    from 132,731 in 2001 to an estimated 138.000 in 2011, an increase of 4%. The

    Island’s overall population is projected to continue to increase by 8% over the next ten

    years which is in line with England and the South East, with indication that the largest

    increase (25.4%) being in the 65+ age group.

    5.1.3 There is a projected decrease of the number of people classed within working age limit

    of 16-24 from 59.56% to 52% (7%) of the Islands population. This decrease could

    potentially have an impact potentially on downward birth trends and on the number of

    people of working age who enter childcare as a profession.

    32.61% of the Isle of Wight population are over retirement age, 59.56 % are of working

    age (16-64 years).

    3 ONS Population data mid-estimate 2013

    May 2015

    http://www.ons.gov.uk/ons/rel/sape/small-area-population-estimates/mid-2013/index.html

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

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    Population Breakdown (aged 0 – 17 years)

    The Child [aged 0-17 population (office for National Statistics (ONS)) Mid-2013

    estimates] across the Island broken down into locality areas:

    5.1.4 Mid-2013 estimate identifies the island under 4 populations to be 6,605 a minimal

    increase of 0.84%,from 2012 estimate. 4 year olds make up 27.1% of the 0-17

    population.

    0-17 inclusive 0 – 4 inclusive

    North East Wight 9,505 34.7% 2,064 8%

    South Wight 7,049 25.8% 1,662 6%

    West & Central

    Wight

    10,797 39.5% 3,444 13%

    Isle of Wight Total 27,351 100% 6,605 24.1%

    5.15 The following table gives the percentage and number of children broken down into the

    three locality areas:

    5.1.6 If we increase the age range we look

    at statistical data shows that the Mid

    2013 estimate projection for the 0-5

    population shows a steady average

    increase of 0.5% until 2017 where

    estimated population drops by 0.85%

    in 2018. A steady decline of the 0-5

    population is then predicted which

    continues through to 2034 where it

    begins a steady incline. Following

    this line the 0-5 population will reach

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    10

    its peak in 2016

    Live birth data

    5.1.7 In comparison, live birth population data provides forecasts based on the number of

    births occurring in a given year. The use of NHS statistical data provides a clearer

    picture of the current situation and indicates that there are currently 5,963 0-4 year

    olds living on the Isle of Wight which is less that the ONS estimates. Broken down

    into the three locality areas these equate to:

    Early Help Locality 0-4 year old Live Birth

    [March 2015]

    North East 1,811 30.3%

    West & Central 2,193 36.7%

    South Wight 1,504 25.2%

    TOTAL LIVE BIRTHS 5,963 100%

    5.1.8 Birth rate is one of the major drivers of population change which can have an

    immediate impact on the demand for childcare services. Live birth data shows that

    over the last four years 2011-2014 on average 1,420 children aged 0-4 years have

    been born each year on the Island.

    5.1.9 If we look at ‘Live birth projection’ data (NHS – Isle of Wight - May 2015 - linear

    projection4) for the Island which is based upon past trends using 2002 as a baseline.

    The Live birth projection

    data would suggest an

    increase of average 24

    births each year to 2021

    which represents less than

    2% per annum but with a

    net effect of 12% based

    on the year groups moving

    forward. Both the live

    birth projection and actual

    live birth data figures are

    lower than the mid 2013 ONS population estimates indicating that the birth rate is

    lower than predication.

    6. The Welfare Reform agenda and links with childcare

    6.1.1 Child Poverty is measured as the proportion of children living in households with an

    income below 60% of the

    contemporary median

    household income. The

    Governments Childcare

    policy is aimed at

    4 Linear Trends -this data is a projection based on regression linear formulas and does not take into account future migration or amount of

    women at birthing age.”

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    11

    attracting more families back into work.

    The reform of the welfare system and the moves to incentivise work has meant that

    any barriers to making work pay, such as the availability and affordability of childcare

    have become intrinsically linked to the design of a reformed welfare and benefits

    system.

    6.1.2 Children and young people under the age of 20 years make up 21% of the population

    of the Isle of Wight. (Source: Mid-2013 population estimate) 6.0% of school children

    are from a minority ethnic group. The level of poverty is higher than the national

    average (20.6%) and South East region (15.1%) with 21.1% of children (Under 16

    years) living in poverty. [See: DwP - Low income Families].

    6.1.3 This equates to 5,360 children in poverty with nearly two-thirds (64.1% of all children

    in poverty come from a lone parent household (3,440).

    6.1.4 11 areas on the island are higher than 30% poverty including parts of Ryde, Newport,

    Osbourne and Ventnor; with one area (Ryde, St John’s WA) with (48.1%) of child

    poverty (all children). Over time there has been a slight decrease in poverty both

    nationally and locally, the Isle of Wight decreasing from 22% (2010 under 16’s) to

    21.1% (2011 under 16’s). The rate of family homelessness is better than the England

    average. (Source: Joint needs assessment – Isle of Wight September 2013)

    This suggests that ensuring sufficient affordable childcare is critical in specific areas

    of the Isle of Wight to help families improve their financial circumstances.

    Deprivation

    6.1.5 The Isle of Wight covers

    an area of 145 square

    miles. ONS Mid

    population estimates 2013

    give an overall estimated

    population of 138,748

    living on the Isle of Wight,

    4.77% being within the 0-4

    age range.

    % of children in Poverty 2008 – 2011

    Region Age Range 2008 2009 2010 2011

    England Under 16 21.6% 21.9% 21.1% 20.6%

    All Children 20.9% 21.3% 20.6% 20.1%

    South East

    Under 16 15.2% 16% 15.5% 15.1%

    All Children 14.5% 15.4% 15% 14.6%

    Isle of Wight

    Under 16 21.0% 22.5% 22% 21.1%

    All Children 20.2% 21.5% 21.1% 20.3%

    https://www.gov.uk/government/statistics/personal-tax-credits-children-in-low-income-families-local-measure

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    12

    6.1.6 The Isle of Wight has 89 Lower Output Areas (LSOA’s) with 23 of them within the 30%

    most deprived LSOAs in England, according to the Indices of Multiple Deprivation

    (IMD) 2010 (the most recent deprivation rates published) Five LSOAs are within the

    20% most deprived LSOAs in England. Within the IMD LA National rankings the Isle

    of Wight sits at position 126, Appendix 1.

    6.1.7 The Island’s childcare services work within three locality areas, (Appendix 2). On 1st

    April 2015, the local authority redesigned these localities to fit into the new

    commissioning framework with Barnardo’s being commissioned as the management

    organisation for early help services for children aged 0-19 and their families.

    Barnardo’s will work closely with the local authority through their children centres’ in

    supporting the take-up of two year old places from disadvantaged families within their

    reach area/s.

    Ethnicity

    6.1.8 Black and Minority Ethnic Communities and Travellers:

    The 2011 Census identified that 2.7% of the Island’s population are from a Black or

    Minority Ethnic background (BME). These Local figures compare to the UK average

    of 20.2%. With the Island having such a small percentage of BME Communities it is

    a greater challenge to ensure the views and needs of such groups are taken into

    specific consideration, but views are included within the wider analysis.

    6.1.9 Children living in deprived areas’ are more likely to have poor outcomes. Therefore

    ensuring there is sufficient high quality early years education in these areas and that

    there are good levels of take-up and will help to improve life chances.

    Unemployment and Economic Inactivity

    6.2.1 Job Seekers Allowance (JSA) claims have decreased nationally between 2010 and

    2014 and this has also been the case on the Isle of Wight. However, the March 2013

    Job Seeker Allowance statistics show that the Isle of Wight has a higher than average

    out of work population compared with England and the South East Region, with 1,823

    people seeking employment.

    6.2.2. The (JSA) is paid to people under pensionable age who are available for, and actively

    seeking work; of at least 40 hours a week.

    Source: ONS claimant counts with rate and proportions:

    Note % is a proportion of resident population of area aged 16 – 64 and gender

    IOW IOW % SE% Britain%

    All 1,823 2.3 1.2 2

    Males 1,217 3 1.6 2.5

    Females 606 1.5 0.9 1.4

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    13

    2.3

    1.2

    2

    3

    1.6

    2.5

    1.5

    0.9

    1.4

    IOW % SE% Britain%

    JSA - claimants - March 2015

    All Males Females

    6.2.3 In the North East Wight locality, the percentage of JSA claimants in May 2014 aged 16-

    19 compared with all claimants (160-64) is 6.86% which is the highest of all three

    localities. In the South Wight locality the percentage is 3.45%. In the West & Central

    Wight locality, the percentage is 2.61% which is the lowest of the three localities.

    On the Isle of Wight as a

    whole, the percentage of

    6.16 compared with 6.23% in

    the South East and 5.88% in

    England.

    6.2.4 In September 2014, the

    Government using a phased

    approach extended the

    school leaving age from 16 to 17 (2014) 18 (2015), which will have had an impact on

    the number of 16-18 year olds claiming JSA in the future as more young people

    continue with their education and training (Source: ONS via NOMIS - http://www.nomisweb.co.uk/reports/lmp/la/1946157281/report.aspx)

    6.2.5 Although the total Job Seekers Allowance (JSA) claimants on the Island are higher

    than the South East they are broadly similar to the England average. North East Wight

    has a much higher level than the island but both South Wight and West and Central

    are much lower. Unemployment rates for males are double of that for females across

    the Isle of Wight (3% & 1.5% respectively); however women have a higher rate of

    economic inactivity. The different rate is likely because of the result of the longer period

    of time that women take off work to bring up their children. The Isle of Wight has a

    higher percentage of retired population 24.8% compared to the South East 16.3% and

    England 14.5%. (Source: http://www.nomisweb.co.uk/reports/lmp/la/1946157281/report.aspx#tabquals)

    6.2.6 Children from out of work families can be affected by childcare supply; lack of suitable

    and affordable childcare is a barrier to parents accessing work or training. Families

    who are out of work and not actively seeking employment may not need a childcare

    place. Affordability is also a factor, where there are high levels of unemployment, there

    is reduced demand for paid-or childcare compared to areas with lower levels of

    unemployment, this can impact on the sustainability and viability of childcare provisions

    in areas of deprivation. People are described as economically inactive when they are

    without a job and have not actively sought work in the last four weeks and are not

    available to start work in the next two weeks.

    Vulnerable Family Childcare Needs - Two Year Old Place Funding

    6.3.1 The Children’s Plan (2007) outlined the Government’s intention to offer funded childcare places for Britain’s most vulnerable two year olds. This offer was extended in ‘Next Steps for Early Learning and Childcare’ (2009). The Government continues to support the expansion of childcare for disadvantaged two year olds and consulted on the first phase of an additional expansion to 20% of 2 year olds from September 2013. Implementation of the Education Act 2011, required local authorities to provide educational placements for 40% of eligible two year olds.

    http://www.nomisweb.co.uk/reports/lmp/la/1946157281/report.aspxhttp://www.nomisweb.co.uk/reports/lmp/la/1946157281/report.aspx#tabquals

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    14

    6.3.2 In September 2012 the Government provided local authorities with Capital and

    Trajectory funding to support the delivery of new nursery and child-minding places for

    eligible two year olds. The Isle of Wight was allocated 200,000 Capital funding, to

    enable an extension of two year old places. Providers had the opportunity of bidding

    for Capital funds in two rounds to support them in extending / renovating their provision

    to enhance their two year old placements. A set criterion was established to ensure

    funds were allocated and spent appropriately. Grants were awarded to be spent within

    a set period of time as outlined within individualised contracts.

    6.3.3 The Isle of Wight is committed to developing high quality early years and childcare provision and a capital grant was made available to all eligible providers without discrimination, through an open, fair and inclusive process.

    Capital Grant purpose:

    Create new additional places in areas of high demand across the Isle of Wight, 350 new places have been developed across the Island.

    Enhance existing provision for providers already delivering to larger cohorts of eligible children;

    To enable two year olds to access the environment safely ensuring accessibility and safeguarding of children.

    Funded organisations are required to keep financial records and comply with the

    local authority monitoring processes.

    Changing the age range of schools to take two year olds as pupils

    6.3.4 The Small Business, Enterprise and Employment Act (2015)5, by amending The

    Childcare Act (2006), has removed the requirement for schools6 to register their early

    years provision for two-year-olds separately with Ofsted, so long as it meets certain

    requirements. This came into force on 26th May 2015.

    6.3.5 Maintained schools can run a nursery for children two to four years of age, and can

    lower their age ranges by up to two years without having to follow a formal statutory

    process. An Academy or Free School will need to submit a fast-track request to lower

    their age ranges by up to two years. This does not need a formal business case. If a

    maintained school, academy or free school is changing its age range by more than two

    years (for example, moving from a 5-11 age range to a 2-11 range) a formal process

    still needs to be followed. Details can be found at:

    https://www.gov.uk/government/publications/school-organisation-maintained-schools

    Universal Free Early Years Educational Funding for 3 & 4 year olds.

    6.4.1 The Early Years Entitlement for 3-4 year old children is a universal entitlement. All

    providers registered on the Isle of Wight Local Authority ‘Directory of Providers’ to

    offer Childcare and Early Education places are required to comply with the Equalities

    Act 2010.

    5 Small Business, Enterprise and Employment (SBEE Act (2015))

    6 https://www.gov.uk/government/publications/school-organisation-maintained-schools

    https://www.gov.uk/government/publications/school-organisation-maintained-schoolshttps://www.gov.uk/government/publications/making-significant-changes-to-an-existing-academyhttps://www.gov.uk/government/publications/making-significant-changes-to-an-existing-academyhttps://www.gov.uk/government/publications/school-organisation-maintained-schoolshttps://www.gov.uk/government/collections/small-business-enterprise-and-employment-billhttps://www.gov.uk/government/publications/school-organisation-maintained-schools

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    15

    6.4.2 The number of children benefitting from some funded early education is calculated on

    termly headcount data. To calculate take-up rates for 3 & 4 year the Department for

    Education DfE, uses the ONS mid-population estimate. For two year olds, take-up

    rates are expressed as a proportion of the estimated eligible population

    6.4.3 The Early Years Single Funding Formula [EYSFF] determines the hourly rate to be

    paid to each setting providing early year’s education. The hourly rate is fixed at the

    beginning of the financial year starting from 1 April. The EYSFF has a fixed base rate

    and a variable rate for two elements, deprivation and flexibility. The flexibility rate is

    determined by the services offered – the choice of start and finish times for children

    6.4.4 A Deprivation supplement is paid based upon ‘The Income Deprivation Affecting

    Children Index’. (IDACI) is an index of deprivation used in the United Kingdom. The

    index is calculated by the Office of the Deputy Prime Minister and measures in a local

    area the proportion of children under the age of 16 that live in low income

    households.

    Early Years Pupil Premium

    6.5.1 The introduction of the new Early Years Pupil Premium from April 2015, to support

    disadvantaged 3 & 4 year olds requires the local authority to pass on local Providers

    an allocation of 53p per hour, (£310 per year – a child accessing full entitlement) per

    child to all eligible 3 & 4 year old children who meet the criteria. The premium is

    available for all 3 & 4 year olds who access early educational placements and meet

    the criteria for ‘free school meals’; the local authority is required to pass on the

    maximum entitlement.

    6.5.2 In order for providers to access the funding parents have to submit an application

    form and the local authority then has to check eligibility using the DwP eligibility

    checking service.

    6.5.3 The Government have predicted that 372 children are eligible to receive the Early

    Years Pupil Premium Supplement on the Isle of Wight, and have provided £107,242

    funding for an additional 355 (PTE) children. To-date 109, 3 & 4 year olds (29.30%)

    applications have been checked as eligible for the supplementary funding, equating

    to 20673.5 funded Hours.

    6.5.4 High quality early years education has been demonstrated to make a significant

    difference in closing the attainment gap. Therefore it is important to ensure the

    childcare market is specifically takes into account the needs of children who are at

    risk of poor outcomes.

    6.5.5 School Census data 2013 identifies 1,325 (14.8%) of the 8,916 children on roll were

    accessing free school meals. This was 4.4% lower than the Government eligibility

    estimate of 1711.

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    16

    Strengthening Families Programme [SFP]

    6.6.1 Number of SFP referrals from 1 April 2014 to 31 March 2015. As part of the Liberal &

    Conservative Governments support for families, the ‘Troubled Families’ initiative,

    known as the ‘Strengthening Families programme on the Isle of Wight encourages

    local authorities to work with families’ to:

    Get children back into school

    Reduce youth crime and anti-social behaviour

    Put adults on a path back to work

    Reduce the high costs placed on the public sector each year

    6.6.2 In total, the Strengthening family team have supported 142 families in total, 64 families

    had children under the age of five years.’

    Number of Referred Families with children < 5yrs

    No. of families

    % of Locality

    % of 64

    NE

    In Programme 10 56% 16%

    Not in Programme 8 44% 13%

    Area referrals: 18 28%

    SW

    In Programme 15 68% 23%

    Not in Programme 7 32% 11%

    Area referrals: 22 34%

    W&C

    In Programme 20 83% 31%

    Not in Programme 4 17% 6%

    Area referrals: 24 38%

    Total Referrals: 64

    Children in care (CIC)

    6.7.1 At the end of March 2015, there were 222 young children and young people who were

    being looked after by the Isle of Wight local authority; this represents 74% per 10,000

    of the under 18 population (higher than the national – 60.0 per 10.000)

    6.7.2 Local authority statistics at the end of March in age range:

    - Of the 1 to 4 age range, 13 (5.8%) 4 year olds - (1.8%) & 9 three year olds (4%) (All of which would receive universal free

    entitlement). - 8, two year olds who as CIC children were entitled to and received two year

    old funding and; - 4 one year olds.

    Child Protection (CP) 6.8.1 79% of Children 0-17 years - (205) living on the Isle of Wight became subject to a child

    protection plan during 2013 – 14.

    Rate per 10,000, (Source: Isle of Wight Local Safeguarding Unit) National published data 31/3/2014

    Isle of Wight 63.6 % England 42.1 %

    https://www.gov.uk/government/statistics/characteristics-of-children-in-need-2013-to-2014

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    17

    6.8.2 There are currently 247 children 0 – 17 on the child protection register, 75 (30.36%)

    of which are in the 0 – 4 age range; this equates to 1.13% of the 0=4 population. Source: Local LSCB statistics as at 8

    th July 2015

    SEN & Disability reforms, [SEND]

    6.9.1 The Early Years Foundation Stage (EYFS) sets standards for the learning and

    development of children 0-5 years old and supports an integrated approach where no

    child or family suffer discrimination. All Private, Voluntary & Independent providers

    support an integrated approach and offer placements to children with Special

    Educational needs and/or disability.

    6.9.2 A total of 391 (8.3%) of statutory school aged children on the Isle of Wight are in

    receipt of some SEN support. Approximately 4% (71) of children 0 – 4 year olds of

    age, accessing early educational funding (January census 2015) were identified as

    having special educational needs.

    6.9.3 From September 2014, every local Authority is required to publish information about

    services they expect to be available in their area for children and young people from

    birth to 25 who have special education needs and/or disabilities (SEND); and also

    services outside of the area which children and young people will use. This is known

    as the ‘Local Offer’. Information regarding the Isle of Wight ‘Local Offer’ can be found

    online at ‘Local Offer’

    6.9.4 The Early Years SEN Advisory team support children 0 - 4 in early year’s settings and

    their own homes:

    - Number of children 0-4 supported (Inclusion) [April 2015 – June 2015]

    o North East Wight - 12 children (0.18%) o West & Central – 28 children (0.42%) o South Wight – 9 (0.13%)

    - Number of children supported (Portage Caseload) [April 2015 – June 2015] Core Portage (SEN into homes)

    o North East Wight - 26 children (0.05%) o West & Central – 17 children (0.06%) o South Wight – 19 (0.10%)

    - Number of ‘High Needs’ children attending specialist school [Medina House] provision from each locality.

    o North East Wight - 2 children (0.03%) o West & Central – 1 child (0.01%) o South Wight – 3 (0.04%)

    The percentage of children under the age of 16 claiming Disability allowance is minimal.

    https://www.iwight.com/localoffer

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    18

    7. Quality of Childcare Provision

    7.1.1 Ofsted statistics (December 2014) show the Island to have achieved an average 83%

    ‘Good & ‘Outstanding’ combined judgements, lower than the national average.

    However to take into consideration, in proportion 9% of Island Early Years day-care

    provisions are awaiting an inspection after initial registration.

    7.1.2 Out of the 49 inspections received within the last Inspection cycle across the Isle of

    Wight, the percentage of Early Education Day care providers achieving a Good or

    Outstanding Ofsted outcome stands at 87% slightly higher than the current national

    average of 86%.

    7.1.3 20.1.5 Ofsted’s December 2014 table shows the percentage of good or outstanding

    judgements in the Isle of Wight compared with our statistical neighbours’, as at

    December 2014.

    Childminder Inspections.

    7.1.4 78% [33] of childminders on the Isle of Wight received a ‘Good’ or ‘Outstanding’

    Judgement, 19% [8] received requires improvement whilst 2% [1] were ‘inadequate’.

    The Good and outstanding judgements are lower than the National average which

    stands at 82%. Inadequate judgements are comparable.

    (Source: Ofsted Data View – as at 31st December 2014)

    8. Overview of the Isle of Wight local Early Years & Childcare Market

    SUPPLY OF CHILDCARE

    This section provides an overview of childcare market broken down into Early Help Locality

    level which aids service delivery and planning.

    8.1.1 Assessing the volume of childcare is complex, childcare can be broken down by

    location, type Ofsted7 registered or non-registered provider;

    (voluntary/private/maintained/childminder/nursery/Early Help centre; community

    nursery), type of childcare (full-time/ Part-time/, day-care/after-school care/holiday

    provision) age range (under five/five to eight/over eights) etc.

    Number of Day-care Early Education & Childcare Providers

    8.1.2 The childcare provision on the Isle of Wight, in the main is provided by the private,

    voluntary and independent sector. (PVI Sector) The Island has no ‘sessional provision’

    open for less than six hours a day and only one pack away provision based within a

    7 Ofsted

    https://www.gov.uk/government/organisations/ofsted

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    19

    Church hall. Only two stand-alone registered out-of-school provisions exist, with the

    majority of out-of-school care, including holiday provision being provided by day-care

    providers. 66.6% (34) of our private, voluntary day-care settings are based on school

    sites

    8.1.3 The Office for Standards in Education, [OFSTED] no longer register8 childcare

    providers for the number of places they can offer, it is now down to each individual

    provider to establish their maximum offer. However, not all providers choose to make

    their potential maximum places available and take into consideration their staff child

    ratio requirements together with the age of children on roll when calculating their

    capacity. Therefore accurately assessing number of places can be difficult.

    8.1.4 Childcare provision is located across the island within our three Early Help locality

    areas:

    North East - South Wight - West & Central

    8.1.5 Twice a year Ofsted publishes statistics on the number of childcare providers

    registered on the Early Years Register and the Childcare Register. Providers offer a

    varied amount of hours per day; however Ofsted statistics only indicate the amount of

    children at any one. For the purposes of this report, the status of childcare places on

    the Isle of Wight is taken from Ofsted official statistics August 2014, whilst a

    comparison of current provision is provided.

    8.1.6 The Ofsted ‘Childcare on non-domestic premises category total includes day-nurseries,

    pre-school, stand-alone out of school and holiday provision. For the purposes of

    accurate analysis for increase of early years funded places, the count for the two

    stand-alone out of school provisions have been identified separately in the current

    calculations.

    8.1.7 As of 31st August 2014, Ofsted statistics show that the Island had a total of 127

    providers registered on the Ofsted database offering a total of 2,681 childcare places

    across the Isle of Wight. Of these, 2,344 were places available as funded placements,

    to children 0 – 5 years, the remaining being available specifically for childcare

    8 A new Early years Foundation Stage (EYFS) came into effect in September 2012. This changed the way Ofsted registered providers on the Early Years Register: Most providers now do not have conditions of registrations as the requirements they must meet are set out clearly in the revised EYFS

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    20

    placements. Combined with the additional 96 places offered by the maintained and

    independent school sector, the Island had a total of 2,777 childcare places available at

    this time.

    Growth of Places

    8.2.1 Early Years’ providers actively provide early years funded places to 2, 3 & 4 year olds

    across the Isle of Wight. As of May 2015, 66 providers offer educational placements.

    8.2.2 A provider survey undertaken in March 2015 indicates providers across the Isle of

    Wight are now able to offer a total of 3,130 childcare places. The enhancement of

    childcare places from 2,777 which incorporated Ofsted 21st August statistics (2,681),

    plus 96 additional childcare places across the island can be attributed in the main to

    the Achieving two year old Capital funding project. This equates to an increase of 353

    additional childcare places available. (12.7%)

    8.2.4 Broken down across the

    Island’s three children locality

    areas, this equates to the West

    and Central locality providing

    41% of the available childcare

    places across the island, whilst

    the South Wight provides 32&

    and North East provide 28%.

    Day-care

    8.3.1 There are currently 55 Ofsted

    registered day care providers, 7 (12.7%), Appendix 3 which are run by school

    governing bodies. The Island only has one maintained nursery class and one

    independent school offering early years placements offering an additional 90 places,

    not included within the Ofsted statistical data.

    8.3.2 One specialist maintained school operates from the centre of the island offering six

    placements for children aged 2-5 with severe complex needs. All settings across the

    island comply with the Equality Act 2010 offering inclusive placements.

    8.3.3 The Education Act 2011 requires all local authorities to provide free early years

    education to disadvantaged two year olds. The local authority should ensure that

    ‘Two year old funding’ is accessible from ‘Good’ or ‘Outstanding’ providers; in addition

    providers awaiting their first inspection are also able to deliver two year old

    placements. However the local authority has the option to use providers who hold a

    ‘requires improvement’ Ofsted judgement.

    Out of school/Holiday Provision

    8.4.1 The majority of provision provided before/after school and within holiday periods is

    provided through the private and voluntary sector. (Source: Synergy/Ofsted in-port)

    22 (41.7%) of our providers work all year 27 (52%) work term time only

    869

    986

    1275

    0 200 400 600 800 1000 1200 1400

    NORTH EAST

    SOUTH WIGHT

    WEST AND CENTRAL

    28

    %3

    2%

    41

    %

    Capacity

    Ea

    rly

    He

    lp l

    oca

    liti

    es

    Childcare Place Capacity by Locality Area

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    21

    22 (41.%) provide breakfast club 23 (45%) run after school sessions 21 (41%) offer holiday provision for children aged 0-12 years.

    i) A small percentage of providers will accommodate older children upon request.

    One holiday centre within the North East Wight is registered to provide up to 40

    places, 0-17 and two schools provide both breakfast and out of school care for

    primary school children maximum capacity 25. Data is not currently officially

    collated from schools across the Island.

    ii) The Isle of Wight Council has awarded funding to 12 organisations who will

    deliver youth provision across the Island for young people aged 11 to 19 and up

    to 25 for those with additional needs as part of the island’s new youth offer. The

    Youth offer is based within the three localities across the Island.

    iii) Data held by the Family Information Zone also confirms we have 257 sports

    based activity groups and 118 other activity groups e.g., drama, arts and crafts,

    uniformed groups offering services to island young people. During 2014 the

    Family information zone received five requests for brokering services, successful

    placements were found. 2 parents required a ‘Home childcarer’, 1 a childminder,

    1 to move provisions and 1 parent required holiday care for an SEN Child.

    Childminders

    8.5.1 Child-minding is a unique but

    valuable form of childcare provision

    and forms part of the Island Day-care

    early years educational place offer.

    The Islands child-minding population

    is distributed across the Island with

    South Wight having the lowest

    percentage of providers, whilst the

    North East has the most. Broken

    down into specific areas, Ryde,

    (North East) has the largest number

    of active childminders, whilst

    Freshwater (West and Central) has

    the fewest.

    8.5.2 24% [13] of Island childminders offer early years funded places to 2, 3 & 4 year olds.

    Whilst 100% of childcare on Domestic & Non-domestic premises are registered on

    the Isle of Wight Councils ‘Directory of providers’ to offer universal funding to 3 & 4

    year olds, of which 94.5% offer funded places to eligible two year olds.

    8.5.3 From September 2014 the Early Years Education and Childcare Statutory Guidance for Local Authorities was amended to enable childminders who register with Ofsted or a ‘Childminding Agency’ to deliver Early Years Funded places, [EYE] dependent upon their Ofsted Grade.

    There are currently no registered ‘Childminder Agencies’ on the Isle of Wight.

    2138%

    1629%

    1833%

    Registered Childminders as at May 2015

    North east

    South Wight

    West & Central

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    22

    8.5.4. All EYE childminders that take 3 and 4 year olds have been approved to take funded

    2 year olds. There continues to be on-going work by the Childcare Sufficiency

    Officer to increase the availability of EYE childminders across the island to support

    the expansion of 2 year old places and extend parental choice.

    8.5.6 EYE funded childminders have increased by 80% [8] since the summer 2014 and it is expected that the numbers will continue to rise during 2015.

    Movement between Sectors

    8.6.1 Evaluating the trend over the last five years highs and lows are highlighted across all

    registration types with childminding offering the largest movement within the sector

    which is comparable with national statistics.

    8.6.2 The highest movement of day-care providers [Childcare on Non-Domestic Premises]

    occurred between 2011 and

    2013; these closures in the

    main can be attributed to the

    impact of school

    reorganisation across the

    Isle of Wight.

    8.6.2 Ofsted latest statistics on the

    number of registered

    childcare providers and

    places reveal that between

    March 31 and 31 August

    2014, Nationally 3,311 childminders left the profession, whilst 1,938 joined., this

    equated to a net fall of 41% (1373).

    8.6.3 In comparison across the Isle of Wight, over the whole of 2014/15 there were 15

    childminder resignations and 3 new registrations within a net loss of 27% within the

    period.

    8.6.4 Current data shows that (Mid-estimate 2013 population data) there are 1,255, 3 year

    old children living on the Island. If we calculate 40% of two year olds (519) & 30%

    (393) of 4 year olds into the equation, we are looking at needing a maximum

    requirement of around 2167 early years funded places.

    8.6.5 The table below provides an estimate of childcare place availability per locality, using

    live birth data to undertake a corresponding match to estimated population data. In the

    three localities we can potentially project an over- supply of childcare places available

    for funded children:

    West & Central around 27% North East around 10% South West around 34%

    2011 2012 2013 2014 2015 total

    Childcare on nondomestic

    18 6 7 2 3 36

    childminder 17 12 21 11 4 65

    Homechildcarer 13 0 8 5 2 28

    010203040506070

    Nu

    mb

    er

    of

    clo

    sed

    Pro

    visi

    on

    Isle of Wight - Resigned Provision

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    23

    9. Early Years Entitlement - Funding Trends

    9.1.1 New draft statutory guidance was issued by the DfE in ‘Early Education and childcare

    – Statutory guidance for local authorities – September 2014 ’.

    9.1.2 The draft statutory guidance states that local authorities are required by legislation to:

    Use a locally determined, transparent formula – the early year’s single funding

    formula (EYSFF) – to set the funding rates for all types of provider.

    Construct a formula composed of either a single base rate for all providers or

    a number of base rates differentiated by type of provider according to

    unavoidable cost differences.

    The formula must include a deprivation supplement for three and four year

    olds, but is not required to do so for two year olds.

    Issue all providers with an indicative budget at the beginning of the year.

    Adjust budgets to reflect actual levels of participation within the financial year,

    across all sectors. The adjustment must be based on a count of children

    attending provision conducted at least three times a year.

    9.1.3 Local authorities should ensure their EYSFF is clear, transparent and, in particular,

    that:

    the number of base rates is kept to a minimum,

    any supplements are understood by providers and help drive positive

    outcomes for children, and

    Providers of early education for two year olds are funded using a single base

    rate, with no supplements (except where funding is for children with additional

    needs such as special educational needs).

    9.1.4 A consultation was held with providers October 2014 to set out proposals to the Early

    Years Single Funding Formula (EYSFF) for 2015/16. The table bellows shows the

    2014 and proposed 2015 EYSFF rates. Statistics on the current formula factors can

    be found in Appendix 4.

    0200400600

    8001000

    12001400

    Place availability - Comparison live birth data

    Live Births 2 yr olds(40%)

    Live Births 4 yr olds (30%)

    Live Births 3 yr olds

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/298754/2014_Draft_Statutory_Guidance.pdfhttps://www.gov.uk/government/uploads/system/uploads/attachment_data/file/298754/2014_Draft_Statutory_Guidance.pdf

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    24

    Current rate (per hour) 2014/15 Proposed rate (per hour) 2015/16

    Base Rate £3.54 (£3.60 from September 2014) £3.60

    F1 £0 £0

    F2 £0.07 £0.07

    F3 £0.12 £0.12

    F4 £0.18 £0.18

    IDACI 1 (0-0.09) £0.1234 £0.13

    IDACI 2 (0.1-0.19) £0.1542 £0.16

    IDACI 3 (0.2-0.249) £0.1851 £0.19

    IDACI 4 (0.25-0.29) £0.2159 £0.22

    IDACI 5 (0.3-0.39) £0.2468 £0.25

    IDACI 6 (0.4-1.0) £0.2776 £0.28

    Three & Four Year Old take-up

    9.2.1 The Isle of Wight has a high percentage of take up of 3 & 4 year olds benefiting from some free early education against South East Region, Statistical Neighbours and National average.

    2008 2009 2010 2011 2012 2013 2014

    England 95% 95% 94% 94% 95% 96% 97%

    South East 97% 96% 95% 95% 95% 96% 96%

    Statistical neighbours’

    96% 96.9% 96.4% 98.6% 98.2% 98.5% 97.9%

    Isle of Wight 95% 95% 99% 97% 98% 2,530 children

    97% 2,510 children

    98% 2,620 children

    Source: DfE Benchmarking tool

    9.2.2 All providers who operate more than the statutory 38 weeks of the year offer parents a

    ‘stretched offer’, where parents/carers can access their funding entitlement over longer

    periods to suit their individual needs.

    9.2.3 Comparing the trend take-up data for

    the past five years, it identifies a peak

    was reached in 2014. January 2015

    Census statistics shows a fall of

    around 4.2%. However, there has

    been identified discrepancies’ in the

    2015 Census data, which is currently

    being re-analysed, and should be

    viewed with caution at this stage.

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    25

    9.2.4 EYE take up suggests that 3 year olds are taking up an average of 93.4% and 4 year

    olds 90.7% of their Full-time equivalent [FTE] free entitlement place per week.

    9.2.5 An initial analysis of available data suggests there are pressure points within the East

    Cowes area, where a number of children are not able to access their full entitlement

    locally; plans have been put into place to address this.

    9.2.6 During the summer 2014 funding period, 2,152 children aged 3 – 4 years accessed

    early years funding, taking up a total of 393243.80 hours.

    Two year Old Take-up

    9.3.1 To-date, the local authority has placed no restriction on providers and all providers

    registered on the local authority ‘Directory of Providers’ are able to offer two-year old

    placements. The Isle of Wight County Council was included within the initial pilot and

    offered 50 funded places during 2009 – 2010. This number increased to 100 places in

    2013 where the scheme was initially funded via a ring-fenced budget within the Sure

    Start Early Years Childcare grant, this no longer exists and all early years funding is

    financed through the Designated Schools Grant (DSG).

    9.3.2 September 2013 saw the scheme increased to 20% of the most disadvantaged two year olds – 263 accessed funding in 2013. The Government increased the requirement to fund 40% of two year olds in September 2014. From July 2013 to June 2015, the local authority has processed 1195 applications, 1076 two year olds have been eligible to access a funded place.

    9.3.3 The Isle of Wight receives an allocated hourly rate for 2 year olds of £5.07 per hour

    and currently pay providers £4.90.

    The table below shows the growth of two year old applications received since 2013.

    Early Help Locality Area 2013 % of total

    applications 2014 % of total

    applications Up to 31 May 2015

    North East East Cowes 27

    30.70%

    70

    40%

    18

    North East Ryde 54 122 67

    South Wight The Bays 53

    30.30%

    111

    31%

    60

    South Wight Ventnor 26 68 26

    West & Central West Newport 20

    39.10%

    49

    34.30%

    24

    West & Central Cowes 17 41 16

    West & Central East Newport 50 78 33

    West & Central West Wight 16 26 14

    Grand Total 263 565 258

    9.3.4 Data for the number of potential eligible two year olds is provided in a termly report

    from the Department for Work and Pension’s, this provides calculated figure’s using

    the number of benefit claimants during each period. The Local Authority are given a

    short prescriptive time-frame of three weeks to use this data as family circumstances

    change in the period between publications, therefore the actual eligibility number may

    differ from that provided.

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    26

    DWP Data Set – March/April 2015

    • March 2015 Dwp data set - 557 potentially eligible parents identified

    • 89% submitted application for funding

    o North East 26.4%

    o South Wight 32.5%

    o West & Central 29.5%

    • 68.9% parents took up the offer.

    9.3.5 974 children took up a two year old place in 2014 - Average take-up (2 year olds) per

    financial year (2015) to-date = 409 (Summer 2015 headcount total) - 24.6% increase on the

    January census figures of 328.

    9.3.6 During the summer funding period 2015, the 409 two year olds accessing a funded

    place took up a total of 727865.5 funded hours.

    10 Average childcare costs 10.1.1 The 2014 ‘Daycare Trust childcare’ cost survey found that costs for childcare

    nationally have continued to increase year on year. The average cost nationally of sending a child under two to nursery for 25 hours a week is now £109.89 per week or £5,710 per year. The comparison of cost for childcare on the Isle of Wight is considerably lower than both national and South East Region. The average cost for the provision of 25 hours childcare for under 2 year olds in a nursery being £98.00 per week or £5,096.

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    27

    10.1.2 Mean Average cost per hour by Early Help Centre locality

    Locality Childminder Pre-school Day nursery Out of school

    West & Central 3.56 3.38 3.91 3.35

    North East 3.48 3.49 4.50 3.50

    South 3.44 3.40 4.10 2.65

    10.1.3 The Local authority cannot determine the pricing structure of individual childcare

    providers and as with other business sectors, childcare services are influenced by market forces. However, the local authority has a legal duty to ensure there is sufficient affordable childcare and where a gap is identified in the market may consider alternative arrangements to meet their sufficiency duty.

    10.1.4 Whilst the Early Years Entitlement must be provided to parents/carers completely

    free of charge, Providers may charge for additional hours taken up over and above the free Entitlement and for children not qualifying for the free entitlement. These charges are a private business matter between the parent/carer and the childcare provider and do not form part of any funding contract.

    10.1.5 Childcare for younger children is often the most expensive as child/staff ratio

    requirements are higher, therefore higher charges for accessing provision for younger children is the norm. Most parents find that childcare costs decrease as the child/ren get older and become entitled to universal funding the term after their third birthday. There are a number of Government schemes available to parents to help with the cost of childcare. (see Appendix 4)

    11 DEMAND AND PRIORITY GROWTH AREAS 11.1.1The following three tables provides an Area Demographic profile broken down into the

    three Early Help locality areas. (see map in Appendix: 2) Large housing developments

    create demand for childcare places, the largest developments across the island have

    been within the North East Locality, specifically within the area of East Cowes, where

    limited capacity and under supply of places have been identified as an area of need

    and potential growth.

    NORTH EAST

    North East Wight – Area Demographic Profile – Q4 2014-15 Number and ages of children Source: ONS mid-year estimates 2013

    0 - 4 years – 2,320 5 – 14 years – 4,902 15-18 years – 2,283 0-18 years – 9,505

    Lone parents families accessing Working Tax Credit Source: HMRC Personal tax credits statistics August 2012 (NB. LSOA data rounded to the nearest 5 so these summed totals are not completely accurate)

    Lone Parents claiming WTC – 810

    Lone Parents claiming WTC and benefiting from the childcare element – 145

    Nursery 25 hours (under 2)

    Nursery 25 hours (2 plus)

    Childminder 25 hours (under 2)

    Childminder 25 hours (2+)

    After School Club 15 hours

    Childminder after school club (pick-up)

    Isle of Wight

    98.00 £87.50 £85,00 £85.00 £48.00 £51.00

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    28

    Employment profiles and income Source: NOMIS Official Labour Market Statistics Isle of Wight-wide data

    Gross Weekly Pay for full time workers – £459.50 (2014)

    Unemployment – 768 JSA claimants (Feb 2015) (Isle of Wight total = 2.5% of 16-64 year old population compared with 1.3% of South East and 2.0% of GB)

    Housing Development (10+ units) Source: Isle of Wight Council Planning Department. Data as at April 2015

    East Cowes:

    Hawthorn Meadows – 557 approved. 309 completed so far. Around 125 expected to be finished in the next five years.

    Venture Quays – 533 approved. 133 completed so far. Around 140 expected to be finished in the next five years.

    Saunders Road – 20 approved but yet to be started. 8 expected to be completed within the next five years.

    Ryde:

    Greenmount School – 10 plots approved and expected to be completed during 2018/19.

    Ashey Place (Former Swanmore School) – 25 units recently completed.

    Former Telecom Social Club, Park Road – 12 units approved and expected to be completed 2015/16.

    National Grid site, Park Road – 11 units approved. Expected around 2017/18

    Rural:

    Stonewood Camp, St Helens – 21 units approved. 18 units complete. Final three due for completion 2015/16.

    Springvale Hotel, Seaview – 4 units approved. Completion expected during 2018/19.

    11.1.2 The North East Wight has seen a small growth of places within the last twelve months from several providers who have increased capacity due to two year old capital funding. There has been a loss of a 20 place rural provision in Nettle stone, which closed due to sufficiency issues.

    11.1.3 A new provider has submitted an application to re-open the 20 place provision by

    September 2015. A further application for a 128 provision in the centre of Ryde has been submitted. This provision will provide wrap-around-services 51 weeks of the year for 0 – 12 year olds.

    11.1.4 As a result of an increase in children needing to access preschool facilities in the

    East Cowes area, there is a requirement to provide additional pre-school places. Options are still being explored as to the best solution and the IWC Executive Committee have approved an allocation of £200,000 from the Childrens Services Capital Programme to top up the 2 Year Old Capital Funding. £50,000 from the Two year old Capital funding has also been agreed.

    11.1.5 Large housing developments over the last few years have seen an increase in the

    number of families living within the East Cowes area, with only two providers operating capacity is at its highest peak during this summer funding period.

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    29

    SOUTH WIGHT

    South Wight – Area Demographic Profile –2014-15 Number and ages of children Source: ONS mid-year estimates 2013

    0-4 years – 1,617 5 – 14 years – 3,516 15-18 years – 1,916 0-18 years – 7,049

    Lone parents families accessing Working Tax Credit Source: HMRC Personal tax credits statistics August 2012 (NB. LSOA data rounded to the nearest 5 so these summed totals are not completely accurate)

    Lone Parents claiming WTC – 635 Lone Parents claiming WTC and benefiting from the childcare element – 110

    Employment profiles and income Source: NOMIS Official Labour Market Statistics Isle of Wight-wide data 2014

    Gross Weekly Pay for full time workers – £459.50 (2014) Unemployment – 663 JSA claimants (Feb 2015) (Isle of Wight total = 2.5% of 16-64 year old population compared with 1.3% of South East and 2.0% of GB)

    Housing Development (10+ units) Source: Isle of Wight Council Planning Department. Data as at April 2015

    Shanklin:

    Former Teknacron Circuits, Landguard Manor Road – 61 units approved. 52 completed. Final 9 expected this year.

    Former Highlands Hotel, Priory Road – 12 units approved. Expected during 2016/17.

    Berkeley Court Hotel, Culver Road – Approval for 14 units. Not yet commenced. Expected during 2017/18.

    Clarence Court Hotel, Arthurs Hill – 10 units approved. 4 units completed. The remaining units due over the next three years.

    18 Queens Road – 14 units approved and complete last year.

    Orchard Croft Hotel, Victoria Avenue – 10 units approved and due for completion 2015/16.

    Rozelle Hotel, Atherley Road – 10 units approved and expected to be completed 2016/17.

    Land at Atherley Park Way – 12 units approved. Expected commencement 2017/18.

    Orchard Croft Hotel, Victoria Avenue – 10 units approved and due for completion 2015/16.

    Rozelle Hotel, Atherley Road – 10 units approved and expected to be completed 2016/17.

    Land at Atherley Park Way – 12 units approved. Expected commencement 2017/18.

    Sandown:

    Winchester Park Hotel, Fitzroy Street – 13 units

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    30

    approved. All finished within the last year.

    Grange Hall Hotel, Grange Road – 14 units approved. All due to be built 2015/16.

    Sandown Holiday Chalets, Avenue Road – 20 units approved. All complete last year.

    St Catherine’s Hotel, Winchester Park Road – 10 units approved. Due for completion 2016/17.

    Wight City Leisure, Culver Parade – Outline approval for 47 units. Not expected until at least 2019/20.

    Savoy Court, Victoria Road/Avenue Road – Outline approval for 19 units. Not expected until 2018/19.

    Lake:

    Rowanhurst Hotel, Sandown Road – 15 units approved. Building not yet commenced. Expected during 2017/18.

    Ventnor:

    Southern Vectis, Pier Street – 10 units approved. Due for commencement 2018/19.

    Rural:

    Winford Waste – 10 units recently completed. Land south of Hazely Combe, Arreton – 89 dwellings approved. Due for commencement 2016/17.

    11.1.6 Under the two year old capital programme, the South Wight area has seen a

    significant growth during the last twelve months. The majority of additional places being provided by an existing provider who doubled their capacity.

    11.1.7 Within this locality there is also a projection growth of a new baby unit offering 18

    childcare places by January 2016. WEST & CENTRAL

    West & Central Wight – Area Demographic Profile –2014-15 Number and ages of children Source: ONS mid-year estimates 2013

    0-4 years – 2,668 5 – 14 years – 5,581 15-18 years – 2,548 0-18 years – 10,797

    Lone parents families accessing Working Tax Credit Source: HMRC Personal tax credits statistics August 2012 (NB. LSOA data rounded to the nearest 5 so these summed totals are not completely accurate)

    Lone Parents claiming WTC – 915

    Lone Parents claiming WTC and benefiting from the childcare element – 200

    Employment profiles and income Source: NOMIS Official Labour Market Statistics Isle of Wight-wide data 2014

    Gross Weekly Pay for full time workers – £459.50 (2014)

    Unemployment – 609 JSA claimants (Feb 2015) (Isle of Wight total = 2.5% of 16-64 year old population compared with 1.3% of South East and 2.0% of GB)

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    31

    Housing Development (10+ units) Source: Isle of Wight Council Planning Department. Data as at April 2015

    Newport:

    Dairy Crest, Westminster Lane - 60 units approved. All complete.

    Dairy Crest Offices, Mill Street – 14 units complete last year.

    Concrete Products, Westminster Lane – 23 units approved. Expected to start work during 2017/18.

    Land at Pyle Street/South Street – 69 units approved. Works stalled. Not expected to begin again within the next five years.

    Pan Meadows/Bluebell Meadows – 846 units approved. 370 completed so far. 200 more expected within the next five years.

    Trafalgar Car Sales, Crocker Street – 22 units approved. 1 complete. Remaining units not due until at least 2020/21.

    11-11d Lower St James Street – 10 units approved. Expected commencement 2018/19.

    AB Cooke warehouse, Little London – 21 units approved. Not expected to start until 2019/20.

    Treeside/Medina Centre, School Lane, Barton – 23 units approved. Work due to start 2015/16.

    Cowes:

    24-25 Princes Esplanade – 14 units complete 2014/15.

    National Grid site, Arctic Road – 12 units approved. Work expected to start 2017/18.

    44 Worsley Road, Gurnard – 15 units approved. 10 due for completion this year.

    Freshwater:

    Stroud Coppice, Hooke Hill – 20 units approved. 5 completed last year. 10 more expected over the next five years.

    Prince of Wales, Princes Road – 10 units approved. Due for commencement 2015/16.

    Site adjacent Fort Albert, Monks Lane – 9 units approved. Expected one per year from 2014/15.

    Summers Court – 29 units approved in total many years ago. Gradually being built. 11 complete. 2 more due over the next two years. No confirmation of future building dates.

    West Wight Middle School – 50 units approved. 31 complete. Final 19 expected during 2015/16.

    Rural:

    Gatcombe Manor (Whitecroft Hospital) – 122 units approved in total. 54 complete. Remaining 68 expected across the next three years.

    The Lodge, Main Road, Brighstone – 13 units approved. Expected to be built 2016/17.

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    32

    11.1.8 The previous academic year has seen a further significant growth within the West & Central locality, mainly within the Cowes area. Majority of which relates to one day-care provider doubling capacity, by expanding their provision over two adjoining sites.

    11.1.9 Within the Cowes area, an old school building has been leased to a current provider

    extending capacity by 30 places. Within this locality there is also a projection growth of a new baby unit offering 18 childcare places offering 25 places by January 2016. Over all three localities we have seen a 12.7 % growth since the latest Ofsted statistics (August2014)

    12 Provider Sustainability & Demand Trends

    12.1.1 A Parental survey was sent to providers to distribute to

    parents in February this year with returns by April 16th

    2015, the questionnaire was also available on the website.

    We sought the views of parents and carers of children

    between the ages of 0 – 17 who are resident on the Isle of

    Wight.

    12.1.2 65 parents completed the survey, 60 93% had children

    within the 3 – 5 year age range. 37% of respondents had

    children between 0-2 years of age. 35 (53% %) of parents

    who responded had children within the later years age range, over 8 years of age.

    Types of childcare used

    12.1.3 33% [22] of parents surveyed

    either use or would like to use

    some form of childcare 51 weeks

    of the year. Of the parents 65 who

    completed the survey:

    o 94% [61] use Day-care for children aged 3 and 4,

    o 56% [36] use day nurseries;

    o 54%[35] use breakfast clubs;

    o 60% [39] of respondents use after-school services for children aged 3 – 11 years.

    o 63% [41] of respondents use holiday provision.100% of respondent parents said that current childcare arrangements fully meet their needs.

    12.1.4 The greatest users of childcare were parents of 3-4 year old children. 98% [64] of

    parents said they felt the setting their childcare attended provided flexibility of

    childcare which met their needs.

    12.1.5 2% [1] of respondents would have liked a breakfast club at their current provider.

    100 % of parents said they felt there are no improvements needed to the childcare

    they currently use.

    0102030405060

    Type of childcare used/would use

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    33

    12.1.6 Of the parents who do not currently use childcare 10% [7] state that they prefer not to

    use it, 5% [3] do not use childcare as partners or family look after child and 2% [1]

    believe their childcare costs are too expensive to keep their child in day-care during

    the holiday period.

    Reasons for using childcare:

    12.2.1 Overwhelmingly safety and security of children came out as the main factor. 85%

    [55] of respondent parents believed their child to be in a happy, safe and secure and

    caring environment.

    12.2.2 Whilst over 84% [54] of parents stated they use childcare to enable them to carry on

    working or work longer hours. 23% [15] of respondents identified that childcare was

    used to enable them to up-date their skills and undertake continued professional

    development training. 23% [15] of parents indicated that using a childcare provider

    enabled them to spend more time with their families. Only 25% [16] of providers

    indicated in would enable them to undertake training, whilst 32% [20] of respondents

    indicated childcare would enable them to see employment.

    Provider concerns about future sustainability of provision

    12.3.1 Feedback at provider briefings from island private, Voluntary & Independent [PVI]

    childcare providers has identified key challenges for them in the current financial

    climate which impacts on their long term sustainability including changes in demand by

    parents. The impact of welfare reform and pressure on parents to go back to work,

    particularly in more deprived areas is likely to lead to changes in demand for childcare

    to continually meet the market needs of parents.

    12.3.2 Providers indicate that although 39% [25] had not experienced significant changes to

    demand levels over the past 12 months where changes in demand were noted, the

    type and required hours of care which parents need has been changing in line with

    changes to working patterns, flexible working and paternity care. A small percentage of

    Providers have felt that the take up of two year old places have impacted on their

    planned provision for 3 & 4 year olds, as environments have had to be changed to

    accommodate the younger children.

    12.3.3 Providers are also concerned regarding the Government’s intention to increase the

    current 15 funded hours to 30 hours. These concerns are around the ability to expand

    due to lack of available space, the financial implications and the uncertainty around the

    Governments intentions and the implications on the private and voluntary sector should

    schools take-on younger children and access funded placements.

    12.3.4 Providers have reported that this summer term has proved challenging as numbers

    have increased since the start of the 2015 summer funding period. These changes

    have been demanding and could impact on providers’ long term sustainability. In

    addition, the impact of the welfare reforms and the increased demand for 2 year old

    places, particularly in those areas with limited capacity for expansion, is likely to lead to

    changes in demand for childcare to meet the needs of working parents.

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    34

    Conclusion

    On the whole across the three Isle of Wight localities’ there is currently sufficient

    childcare places available. Looking at projected population data would suggest current

    place availability will accommodate future childcare needs across the three localities.

    However, specific gaps in provision have been identified.

    Over the last 18 months, our main focus has been on the development of new Early

    Years Education placements to meet the demand for 2 year olds and to concentrate on

    market management, particularly in the East Cowes area due to a significant housing

    development project. Whilst East Cowes remains part of the wider North East locality, it

    remains a localised concern that continues to be an area of focus regarding childcare

    sufficiency.

    Capacity this summer has failed to meet demand; therefore a short-fall has been

    identified within this specific town; although the North East has sufficient capacity to

    cover overall demand within the locality. Action is currently being taken to resolve the

    issue and increase provision within the immediate local area.

    Analysis of supply and demand of childcare is an ongoing process and a further

    detailed childcare sufficiency review will be undertaken during the summer term 2016,

    this will enable us to up-date our understanding of the childcare market across the Isle

    of Wight, and in particular explore other aspects of the market such as meeting

    childcare needs in rural areas and the barriers to extending early educational provision

    to 30 hours within the PVI sector.

    The Isle of Wight has a good range of high quality childcare across the Island. While

    childcare and early year’s education needs are being met, there are specific vulnerable

    groups where access to early year’s education and childcare is vital to improve child

    and family outcomes.

    Nationally the cost of childcare is regarded as a barrier to many working parents,

    particularly to those on lower income, while costs are less on the Isle of Wight; we still

    need to check there are no barriers. Changes to the Universal Credit system is intended

    to support families’ access more affordable childcare, together with the introduction of

    Tax-Free Childcare for working parents (Autumn 2014). The Family Information Zone

    will continue to advice and support parents on the pending changes which effect the

    childcare sector including changes to the Childcare Voucher schemes. If these policy

    changes are successful then it might lead to an increase in demand in the short term

    but it’s an aging population.

    Policy reforms and the new targets for the expansion of free early education places for

    disadvantaged 2 year olds are intended to encourage more parents to access high

    quality childcare and could lead to more parents in work and rising demand for childcare

    places in the near future.

    Additionally, the Government’s plan to extend the current free childcare for three and

    four year olds from 15 hours to 30 hours will be a key factor in determining how the

    local authority works with both the maintained sector and childcare sector in increasing

    places across the Isle of Wight.

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    35

    The Action plan attached to this report sets out the actions that the Isle of Wight Council

    Vision statement and actions that will be taken to deliver to meet and maintain the

    Island’s sufficiency needs. The action plan covers 2015 – 2017 and the implementation

    plans for the delivery of the specific actions can be found within team delivery plans.

  • CHILDCARE SUFFICIENCY REPORT – Select Committee – July 16th 2015

    36

    Appendix 1 Day Care Providers on the Isle of Wight [Childcare on Domestic & Non-Domestic Premises]

    North East Wight

    Binstead Stepping Stones Casa dei Bambini Montessori CHATTERBOX DOVER PARK CHATTERBOX NELSON STREET Cheeky Chimps Fiveways [Independent nursery Class] Greenmount Community Preschool Haylands Puddleducks Pre-school Oakfield Pre School and Holiday Club Seashells Early Years Centre Limited Springhill Pre School St Marys Pre School The Children's House Montessori The Island - Liittle Herons Childcare The Island Day Nursery (BRADING) Windmills Preschool Ltd The Island Day Nursery

    South Wight

    Berry Hill Childcare Limited Furzehill Childcare Centre Ltd Gatten and Lake Childcare Godshill Griffins Newchurch Nursery Niton preschool St George's Nursery and Pre School St Johns Pre School Ventnor Community Early Years Wroxall Robins YMCA Nursery Shanklin The Island Day Nursery Sandown Scallywags Berry Hill [Out-of-school] Chillerton and Rookley Early Learners

    West & Central Blackberry Lane Pre-School Brighstone Pre School Bright Sparks Preschool Carisbrooke Clever Cloggs Day Care Ltd Freshwater Early Years Centre Fun to Learn Gurnard Pre School Jigsaw Childcare Centre Little Acres Childcare Centre Little Explorers Little Love Lane Nursery and Pre-School Little Squirrels Community Nursery Nine Acres Scally Wags [Out-of-school] Little Stars Preschool Little Ladybirds Northwood Playgroup Sunbeams Pre-school Tops Day Nursery West Wight Nursery YMCA Nursery Newport The Island Day Nursery NPT The Island Day Nursery -WESTON BARTON MAINTAINED [Maintained Nursery Class]

  • Children’s Service Childcare Sufficiency Assessment May 2015 V1

    CHILDREN’S SERVICES DIRECTORATE John Coughlan - CBE

    Director of Children’s Services

    Appendix 2

    Index Multiple Deprivation Local Authority Rankings

    126

    0 50 100 150 200 250 300 350

    Hastings

    Thanet

    Brighton and Hove

    Portsmouth

    Southampton

    Eastbourne

    Slough

    Shepway

    Swale

    Havant

    Oxford

    Isle of Wight

    Dover

    Reading

    Medway

    Rother

    Gravesham

    Adur

    Arun

    Gosport

    Worthing

    Canterbury

    Crawley

    Dartf


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