THE LONDON CHILDCARE MARKET: POLICY CONTEXT Eva Lloyd Co-director ICMEC Cass School of Education University of East Lond

1. THE LONDON CHILDCARE MARKET: POLICY CONTEXT Eva Lloyd Co-director ICMEC Cass School of Education University of East London 3 March 2011

2. London and childcare • Considerable socio/economic and demographic differences between and within Inner and Outer London authorities • Capital’s diverse population, speaking over 300 languages, requires flexible childcare system • Many local markets make up the London childcare market • London is genuinely different Eva Lloyd, ICMEC 3 March 2011

3. Key childcare policies 1997 - 2010 Childcare and early education market featuring: • Supply side subsidy for free part-time early education for 3 and 4 year olds • Demand side subsidy for low income parents, the Childcare element of the Working Tax Credit, towards registered childcare • Supply side support for Sure Start Children’s Centres primarily in disadvantaged areas, some for out-of-school • Fiscal incentives for employer childcare support Eva Lloyd, ICMEC 3 March 2011

4. Main London childcare market characteristics • Free part-time or full-time nursery education in most inner and outer London boroughs also pre-1997 • Some supply-side support for childcare provision in numerous London boroughs also pre-1997 • Possibly greater use of private nannies than in rest of England, but no statistics available • Considerable social stratification in provision and uptake within ‘local childcare cultures’ Eva Lloyd, ICMEC 3 March 2011

5. London’s socio-economic challenges • Child poverty rate 48% Inner London, 28% Outer London (England 30% ) • Maternal employment rate 54% (England 65%) • Lowest uptake of Working Tax Credit compared to England as a whole • Low qualification levels, high unemployment rate and income inequalities disproportionally affecting BME communities and lone parents • High housing, living and transport costs Eva Lloyd, ICMEC 3 March 2011

6. Additional challenges to maternal employment • High levels of lone parenthood, 20% of all lone parents live in London • Atypical working patterns for major employers e.g. NHS and London Transport • Less part-time working • Low pay • Relatively high gender pay gap • Childcare costs 20 to 25% higher than in England Eva Lloyd, ICMEC 3 March 2011

7. London specific childcare policies • The 2003 London Childcare Strategy • Childcare Affordability Programme, CAP-05 • Childcare Affordability Programme, CAP-09 • London Child Poverty pilots • London and rest of England: Childcare tax subsidies shrink under Coalition Government; support for early education continues Eva Lloyd, ICMEC 3 March 2011

8. Focus of LDA Childcare market report • OFSTED registered childcare for children aged 0 to 5 in centres and with childminders • OFSTED registered out-of-school provision and childminding for children aged 5 -7 • Excluded: nursery education provided in schools; informal childcare, which is still the most popular form of childcare for children aged under 2; holiday provision for children aged 5 and over; crèches and private nannies Eva Lloyd, ICMEC 3 March 2011

9. Sources Lloyd, E. (2008) ‘The interface between childcare, family support and child poverty strategies under new Labour: tensions and contradictions,’ Social Policy & Society, 7(4), 479-494 Mayor & GLA Economics: Women in London’s Economy Series, London: Greater London Authority Mayor of London (2003) The London Childcare Strategy: towards affordable good quality childcare for all. London: Greater London Authority Vincent, C. Brown, A. & Ball, S. (2008) ‘Childcare, choice and social class,’ Critical Social Policy, 26(1), 5-26 Eva Lloyd, ICMEC 3 March 2011