Childcare funding (FOI)Childcare funding (FOI)
Produced by the Freedom of Information officeAuthored by States of Jersey and published on
06 May 2016.Request
Can you confirm the number of families affected by the proposed cut in childcare funding (20 hours of free nursery care) per year, as well as confirming what studies have gone into assessing the impact that this cutback will have on the families it will affect?
Response
There are a number of variables which need to be considered when estimating the number of families affected by the proposed cut in childcare funding (20 hours of free nursery care) per year.
This includes:
- household income levels
- predicted cohort numbers
- the predicted proportion of children accessing both States nursery classes and private sector Nursery Education Fund (NEF) nurseries
- the number of children accessing private nursery schools (not accessing the NEF)
- the number of children not accessing any nursery provision.
For this reason, models have been developed which estimate the number of affected families (based on different scenarios) and these are included in the impact assessment below.
Impact assessment
The following modelling has been undertaken to predict the number of families affected by the introduction of means testing in Nursery Education Fund (NEF) private nurseries.
The calculations below have been based on the first three years of means testing (for the academic years 2017 / 18 to 2019 / 20).
During this period, the capacity of the States of Jersey nursery sector will rise from 545 places today to 623 in 2019 to 2020. New nurseries are planned to open as follows:
It is then predicted that the number of places available in the States of Jersey and the NEF sector will be as follows:
From information provided by the Statistics Unit, it is predicted that means testing at a household income level of £75,000 will impact on 30% of households with at least one child under five.
This figure is reduced further as there are a number of children accessing pre-school nursery education at a private school, independent of the NEF (all of whom, it is predicted, live in a household with an income above £75,000).
It is predicted this number will remain constant over the three years of the model and is estimated to be 73 per year.
The number of affected households, therefore, reduces to the following:
The following predictions show the potential impact on users of private sector nurseries in different scenarios and the estimated savings that could be achieved. The savings target is set at £250,000.
The modelling to assess the impact of means testing is predicated on all States of Jersey nursery class places being filled.
Prediction 1
When the size of the States of Jersey nursery sector and private NEF sector are compared in proportion to one another the predicted number of affected parents is as follows:
This will then give an estimated saving of:
Prediction 2
If an assumption is made that there is a higher proportion of affected parents in private NEF settings then the predicted number of affected parents is as follows:
This will then give an estimated saving of:
Prediction 3
Increasing Means Testing Threshold to £100,000
If the means testing threshold was raised to £100,000 the savings are estimated to be (based on the same two scenarios presented above):