Delivering on the vision for accessible and affordable childcare

Working parents received a boost today as the Spending Review unveiled a £1.5 billion combined budget for childcare, early years and Sure Start by 2005-06, and a more than doubling of spending in real terms on childcare by 2005-06, following the conclusions of the inter-departmental Childcare Review.

The extra funding will support the expansion of childcare places across the country, with enhanced services to be provided for children, including to improve the life chances of those from disadvantaged backgrounds. It is combined with reforms to central and local structures that will enhance the Government's ability to deliver its vision for childcare.

In particular it will:

support the integration of good quality childcare with early years education, family support and health services through the creation of children's centres in disadvantaged areas, building on the good practice that exists in Sure Start and Early Excellence Centres. By March 2006, an additional 300,000 children and their parents will have access to health, education and other services through children's centres. The Government's longer term aim is to establish a children's centre in every one of the 20 per cent most disadvantaged wards; and
ensure that 250,000 childcare places are created by 2006 including in children's centres, in order to progress towards the Government's longer term vision of every parent being able to access affordable, good quality childcare;

In keeping with this new focus, responsibility for childcare, early years education, and Sure Start will be integrated within a new inter-departmental unit, with a total budget of £1.5 billion by 2005-06, to ensure that Government policy for children, particularly young children, is joined up.

Reflecting the crucial role local partners have to play in delivering the vision, greater funding and responsibility for delivery of childcare services will be devolved to local authorities, who are best placed to assess local needs.

Welcoming the outcome of the review, Baroness Ashton, the chair of the inter-departmental Childcare Review said:

"The work of the Childcare Review emphasised the importance of childcare to our objectives of extending employment opportunities and tackling child poverty, as well as the significant benefits to children of good quality childcare. Childcare also plays a role in meeting other key objectives, including boosting productivity and closing the gender pay gap.
"These spending plans provide the resources, together with important reforms, that will allow us to deliver an expansion of childcare across the country, particularly in disadvantaged areas, and enhance opportunities and services for families and children everywhere. This will allow us to progress towards our longer term vision of a childcare market, in which every parent can access affordable, good quality childcare."

Notes for editors

1. The National Childcare Strategy was launched in 1998. It aims to create places to help 1.6 million children by 2004. Over 547,000 children have already benefited from additional childcare places created between April 1997 and December 2001.

2. The Government conducted a comprehensive review of public services - the Comprehensive Spending Review - in 1998. The 2000 Spending Review built on this by setting targets and allocating resources for the three years to 2003-04. The 2002 Spending Review revises these plans for 2003-04 and outlines new plans for 2004-05 and 2005-06.

3. The 2000 Spending Review allocated increased funds to childcare, in particular to support the expansion of childcare provision in disadvantaged areas through the Neighbourhood Childcare Initiative - which is creating new places in out of school clubs and with childminders, as well as 45,000 full day care places in new Neighbourhood Nurseries.

4. The Government also provides generous support to working families with the cost of childcare through the childcare tax credit component of the Working Families' Tax Credit and the Disabled Persons' Tax Credit. The Government is currently spending over £320 million per year on the childcare tax credit.

5. As part of the 2002 Spending Review the Government has conducted an inter-departmental review of childcare. The review was conducted by the Performance and Innovation Unit, involving officials from DfES, HM Treasury, DWP, DTI and the Women and Equality Unit, and reported to a ministerial committee of Baroness Ashton (DfES), Baroness Hollis (DWP), Barbara Roche MP (ODPM) and Dawn Primarolo MP (HM Treasury). A report detailing the review's analysis and conclusions will be published in the autumn.

6. The 2002 Spending Review also includes resources to meet, by September 2004, our commitment to a free early education place for all 3 year olds whose parents want one. Since September 1998, there has been a free early education place for all 4 year olds.

7. For further details please contact the DfES Press Office on 020 7925 5741 or visit the website on www.dfes.gov.uk.