Finance and sustainability

Understanding of childcare delivery costs, market value and sustainability is currently limited. About Early Years will fill this gap, encompassing all parts of the PVI sector in England.

Funding remains at the crux of sustainability. The DfE recently confirmed it has no plans to carry out regular reviews of funding rates or revisit its analysis of delivery costs within this parliament.  

It is vital that the sector has up to date measures of wage inflation from statutory rises and general labour market pressures, as well as other cost drivers such as business rate re-valuation, auto-enrolment, the apprenticeship levy and Consumer Price Index inflation.

Work is progressing on this front and more information will be available soon.

The first wave of the About Early Years research programme provided timely insight on sector pay rates and auto-enrolment take up - see the summary charts below.

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Auto enrolment and sector pay rates summer 2017

The chart below shows a breakdown of auto-enrolment 'worker types', based on age, income and pensions information provided in the summer 2017 About Early Years survey. 

It is estimated that 63% of the PVI workforce on permanent or fixed term contracts are making pension payments and eligible for a 1% employer contribution. The Office for National Statistics estimated that in 2016, 60.4% of private sector employees in England had a workplace pension. 

 


 

Sector pay has risen by 9% since Ceeda last captured pay rates in 2014. Average hourly pay ranges from £8.16 in the North to £8.63 in the South. 

Summer 2017 hourly pay rates before deductions