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Childcare<br />
news & views<br />
Here is a recap of key news stories from the past month!<br />
CMA issues open letter to the<br />
early years sector<br />
In response to alleged unfair practices<br />
caused by Covid-19 disruptions, the<br />
Competition and Markets Authority<br />
(CMA) published an open letter to the<br />
early years sector, on the subject of<br />
dealing with parents (consumers) during<br />
the pandemic.<br />
The guidance has been released so<br />
that childcare providers understand<br />
their obligations, under common law,<br />
towards parents.<br />
In summary, charging parents<br />
cancellation fees, retainers and usual<br />
fees during lockdown when nurseries<br />
were unable to open, are some of the<br />
areas addressed in the letter; and in<br />
conclusion, the CMA has decided not to<br />
take any enforcement action. However, it<br />
will continue to monitor the sector.<br />
The letter also states that the Authority<br />
is unlikely to challenge any voluntary<br />
arrangements which were agreed<br />
between parents and settings, providing<br />
parents weren’t pressured into agreeing<br />
out of fear that they may risk losing their<br />
child’s place or even that the setting<br />
may go out of business.<br />
The story on parenta.com can be found<br />
here.<br />
Refunds denied for childcare<br />
voucher scheme<br />
Parents who have paid into childcare<br />
voucher schemes are being denied<br />
refunds by their employers, despite not<br />
being able to use the vouchers during<br />
lockdown. Some say they have built up<br />
balances of more than £1,000.<br />
Although the tax-efficient scheme closed<br />
to new applicants in October 2018, those<br />
who have already signed up are able to<br />
continue to buy the vouchers. In financial<br />
terms, if two parents contribute the<br />
maximum, vouchers could cut the cost of<br />
childcare by £1,866 a year, according to<br />
the scheme.<br />
But with childcare providers closed over<br />
lockdown, many parents have built up<br />
a surplus of vouchers they now can’t<br />
use in the future - this could be because<br />
their children are starting school in<br />
<strong>September</strong>. It has been reported<br />
that when some parents have asked<br />
employers for their money back, they<br />
have been told ‘no’.<br />
The story on parenta.com can be found<br />
here.<br />
The full story, as reported by<br />
thisismoney.co.uk can be found here.<br />
Labour warns of ‘perfect<br />
storm’ for working parents<br />
A “perfect storm” of rising childcare<br />
costs and providers closing down could<br />
make it “impossible” for some parents<br />
to return to work amid the coronavirus<br />
pandemic, Labour says.<br />
The opposition party says childcare<br />
costs in England have risen up to three<br />
times as fast as wages since 2010<br />
and is calling on the Government to<br />
“urgently provide targeted support” to<br />
the childcare sector.<br />
In response, the Government said<br />
the sector had received “significant”<br />
support.<br />
Since 1st June, when early years<br />
providers have been allowed to open to<br />
all children, the Government has said<br />
people who can, no longer have to work<br />
from home. However, Labour warns that<br />
many parents will struggle to return to<br />
workplaces without adequate childcare,<br />
particularly if families cannot rely on<br />
grandparents for help due to the virus.<br />
It says “long-term underfunding and<br />
a lack of targeted support during the<br />
coronavirus pandemic, will make it<br />
impossible for many providers to remain<br />
viable”.<br />
The story on parenta.com can be found<br />
here.<br />
The full story, as reported by the BBC<br />
can be found here.<br />
Ofsted to start visits from<br />
<strong>September</strong><br />
Ofsted has announced that from<br />
<strong>September</strong> this year, it will start to<br />
re-visit nurseries and childminders to<br />
ensure standards are being maintained<br />
and “well-run, safe and effective<br />
childcare is available for all who need<br />
it.”<br />
It has published its guidance on interim<br />
visits which details how these visits will<br />
work in practice and which childcare<br />
providers inspectors will be visiting.<br />
The visits are part of its phased return<br />
to routine inspection, details of which<br />
can be found here and it emphasises<br />
that they are not ‘inspections’ and<br />
will not result in an inspection grade,<br />
though inspectors will still be able to<br />
use regulatory or enforcement powers if<br />
necessary.<br />
Routine inspections of early years<br />
settings will not start before January<br />
2021.<br />
The story on parenta.com can be found<br />
here.<br />
The news story, as published on the<br />
Government’s Ofsted website can be<br />
found here.<br />
Early years practitioners<br />
leave the industry feeling<br />
‘underpaid and undervalued’<br />
A report out on 5th August from the<br />
Social Mobility Commission reveals<br />
that early years childcare workers are<br />
leaving the industry, blighted by low<br />
pay, long hours and poor prospects.<br />
The study says the workforce is<br />
“increasingly unstable”, with not enough<br />
new entrants to replace those who<br />
leave. The Government says it has<br />
boosted funding to childcare providers,<br />
in order to help parents get back to<br />
work, but the Commission urges a total<br />
overhaul of early years careers.<br />
It states that good quality early<br />
years provision is key to reducing the<br />
attainment gap between children from<br />
disadvantaged families and their betteroff<br />
peers, but this provision is at risk as<br />
committed professionals find themselves<br />
undervalued, underpaid and unable to<br />
make ends meet.<br />
The story on parenta.com can be found<br />
here.<br />
The full story, as reported by the BBC<br />
can be found here.<br />
The Social Mobility Commission Report<br />
can be found here.<br />
Care workers to benefit from<br />
new childcare costs grant<br />
A new ‘childcare costs grant’ up to the<br />
value of £2,000 has been launched<br />
exclusively for care workers.<br />
This grant is available from the Care<br />
Workers Charity (CWC), as part of the<br />
charity’s Coronavirus Emergency Fund,<br />
launched in March for care workers<br />
financially hit by the pandemic.<br />
The grant can be used retrospectively<br />
covering childcare costs from 23 March<br />
up to the value of £2,000.<br />
Care workers can apply for childcare<br />
costs for children up to five years<br />
old – for up to £125 per week and for<br />
childminder costs for six to twelve-yearolds<br />
during term time – up to the value<br />
of £70 per week. They can also apply for<br />
holiday childcare costs up to the value of<br />
£150 per week.<br />
The story on parenta.com can be found<br />
here.<br />
The full story, as reported in homecare.<br />
co.uk can be read here.<br />
The CMA letter can be read in full on the<br />
government website here.<br />
4 <strong>September</strong> 2020 | parenta.com<br />
parenta.com | <strong>September</strong> 2020 5