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Achieving quality in market-led ECEC
HelenPenn
Visi*ngProfessor,TCRU,UCLIns*tuteofEduca*on
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A diversion?
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Anthropomorphism?
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Wildlife Trust: Every Child Wild
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Every Child Wild
• “Eachgenera*onseemstohavelesscontactwiththeoutdoorsthantheprecedingone.Weoweittoallyoungpeopletoreversethistrend–fortheirsakes,foroursakesandfornature’ssake.”• 451childrenin12areasacrossEnglandbeforeandaNerpar*cipa*nginac*vi*esranbyawildlifetrustlikeiden*fyingplantsandtrees.• “Thisresearchshowsthatchildrenexperienceprofoundanddiversebenefitsthroughregularcontactwithnature.Contactwiththewildimproveschildren’swellbeing,mo*va*onandconfidence.• “TheWildlifeTrustsbelieveeveryoneshouldhavetheopportunitytoexperiencethejoyofwildlifeindailylifeandwe’recallingongovernmenttorecognisethemul*plebenefitsofnatureforchildren–andensurethatatleastonehourperdayisspentoutdoorslearningandplayinginwildplaces.”
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My ideal nursery
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My ideal nursery
• Thecommunitynurserymovementwasbuiltonthepremisethat‘we’–thatis,everyoneinvolved,staffandparentsandchildrenalike–madedecisionsandactedtogethertodefineandpursuethenursery’sobjec*ves• Myidealnurserywasanearimpossible,cuUng-edgecombina*onofkindnessandconcernforthevulnerablecombinedwithintellectualsavvyandmorespacethananyhomecouldoffer.IwantedchildrentobejoyfultogetherbutnotisolatedintheirownchildhoodgheWo,tohavefriendships,torunandusetheirlimbs,tosavourtheeverydayeventsoftheirlivesandlivelifetothefull,includingexperiencingslipper-chewingpuppies,Chinesecuisine,scatologicalcuriosityandjunkyan*ques.
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My ideal nursery
• Ifchildrencometogetherinnurseries,howshouldtheirrela*onshipswithoneanotherbesupported?Andwhatshouldbetheroleandtasksoftheadultcaringforthem?Theseareper*nentques*ons,especiallynowthatsomanyyoungchildrenaWendnurseries,andtheyares-llunanswered.The‘quality’measurementscommonlyusedrefertostructuralquality(premises,equipment,staffing)andprocessquality(howindividualmembersofstaffsupportindividualchildren).Itisanextraordinaryactofblindnesstofailtoacknowledgethatinsitua*onswheremanychildrenandadultscometogether,theremightbeotherdynamicsopera*ng.
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Issues of quality
• Purposefulac*vi*es,whosemeaningandrelevanceisconstantlyrevised• Parentsandstaffhavingavoiceinthedecisionmakingofthenursery• Inclusivityforpoororvulnerablefamilies,andinclusivityforchildrenwithspecialneeds
Priva*za*onputstheseaimsunderstress.
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UN: Poverty and Human Rights
• UN73rdGeneralAssembly(2018).ReportoftheSpecialRapporteuronextremepovertyandhumanrights.UNA/73/396• TheUNreportdiscussestheimpactofpriva*zedservices,inalmostallserviceareas,notjustchildcare.Itsaysthatpriva*za*onacrosstheworldhasusuallymeanttwothings,firstlyalackofaccountability,andsecondlytheexclusionofthepoor.Thisisaworld-widephenomenon,notmerelyana*onalorlocalone,andisareflec*onofwhatiscalledtheglobaleconomicorderwhichprivilegesthewealthyattheexpenseofthepoor.Thegrowthofinequalityhasbeenthemajoreconomicphenomenonofthelast20yearsorso.
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Private sector childcare in the UK/England
• Ourstudyaimstochartchangesinchildcareprovision,usingpublicallyavailableinforma*onaboutprivatenurseriestoexploreissuesoffinance,loca*on,con*nuity,transparency,accountabilityandgovernance.Wearecarryingoutareviewofthereachoftheprivatechildcareindustryusingmarketresearch,financialanalysisofselectednurseries,‘provisionmapping’toassesshowprovisionvarieswithdifferentlevelsofdepriva*on,andcasestudiesofprivateproviders.• hWps://www.nuffieldfounda*on.org/private-sector-childcare-england
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The current size and shape of private childcare • Mostformalchildcareisprovidedbytheprivatesector,rangingfromsmallprivateoperatorstomul*-millionpoundinterna*onalbusinesses.Thefor-profitchildcaremarketintheUKisworthanes*mated£5.5billionpoundsandevidencesuggeststhefor-profitsectorisgrowingandconsolida*ng.Over80%ofallplaces,areprovidedbytheprivatesector,and53%ofthoseplacesareprovidedbybigcompanies.• Thelargestthreechains,betweenthemprovidingover60,000places,areownedbyforeigninvestors,withfinancialheadofficeslocatedinSingapore,FranceandtheUSA.Furtherchangesinthesectorseemlikely,mostnotablyincreasedpenetra*onbylargechains,andincreasedforeigninvestment.
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The current corporate nature of childcare
• Corporatechildcare,ornurserychainsnowprovide53%ofallplaces.Butthisisaveryvola*lesector,typifiedbycon*nualmergersandacquisi*ons,withthelargercompaniesbuyingupsmallerchains.• Thetrademagazine,NurseryChainsannuallyranksthetop25childcarecompanieswiththemostnumberofseUngsandplaces.In1998thelistincluded70companieslisted.By2018thishadincreasedto179companies.Thecombinednumberofplacesonofferinthecompanysectorin1998was33,506.By2018thetop25companiesalonewereoffering110,271places,andthelargestcompanyalone,BusyBees,wasoffering31,514places.
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The current corporate nature of childcare
• Thecurrentgovernmenthasbeenac*velypromo*ngtheUKchildcaremarketasa‘globalopportunity’forinvestmentanditisnowbeingdescribedasa‘hotmarket’.Atthetopend,thereareconstantacquisi*onsandtakeovers,withlargecompaniesexpandingthroughpurchases,take-oversandrefinancingofsmallerchains.Thelargestthreechains,betweenthemprovidingover60,000places,areownedbyforeigninvestors,withfinancialheadofficeslocatedinSingapore,FranceandtheUSA.Furtherchangesinthesectorseemlikely,mostnotablyincreasedpenetra*onbylargechains,andincreasedforeigninvestment.
Chris-eandCo:EarlyChildhoodEduca-onandCareWorkforceTrendsandAssociatedFactorshWps://www.chris*e.com/getaWachment/News-Resources/Publica*ons/September-2019-(1)/Early-Childhood,-Educa*on-Care-Workforce-Trends-A/C-Co-ECEC-Report-(Pages)-(1).pdf.aspx/?lang=en-GB&ext=.pdf
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InternaJonal childcare firms in the UK
• BusyBeesNurseriesinEngland,Scotland,Wales,Ireland,Singapore,Malaysia,Vietnam,China,Australia,CanadaandtheUnitedStates• ChildbasePartnershipNurseriesinEnglandandChina• CognitaSchoolsNurseriesandpre-schoolsinEngland,Chile,Brazil,Spain,Switzerland,Italy,HongKong,Thailand,SingaporeandVietnam• KangarooPouchNurseriesinEnglandandChina• Evolou*onChildcareNurseriesinEngland,BahrainandChina• KidoSchoolNurseriesinEnglandandUnitedStates• Bri*shEarlyEduca*onNurseriesinChina
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InternaJonal childcare firms in the UK
• BrightHorizons(HeadquarteredinWatertown,MassachuseWs,UnitedStates)-NurseriesintheUS,Canada,England,Scotland,Ireland,NetherlandsandIndia• LesPe*tsChaperonsRouges(HeadquarteredinParis,France)–NurseriesinFrance,Germany,EnglandandCanada• LaMaisonBleue(HeadquarteredinParis,France)NurseriesinFrance,Switzerland,Luxembourg,EnglandandRomania• HjalliModel(HeadquarteredinReykjavik,Iceland)NurseriesIcelandandScotland• JiaYiEduca*on(HeadquarteredinChina)NurseriesinEngland
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Sources of informaJon for the Nuffield Research Study on Childcare • i)fromthesectoritself,andthebusinessandmarke*nginforma*onthattheyprovide• ii)otherrelevantliterature,especiallyonstaffing,forinstancethereportbythelowpaycommissiononwagesinthesector.• Iii)Forensicaccoun*ng.AlllimitedcompanieshavetosubmittheiraccountsannuallyintheUK.Whatdotheseaccountstellusaboutnurserybusinesses?Onememberofourteamisaforensicaccountantwhohasbeenexaminingtheaccountsofnurserycomanies.
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Elder care privaJzaJon
• Debtrepaymentsareasignificantareaofleakageforsomeofthelargest26providers.• Theproblemisespeciallyseriousinrela*ontohomesoperatedbythe5largestfor-profitcarehomeproviderswhichareownedorbackedbyPrivateEquity.Collec*velytheirdebtsamountto£35,000foreachcarebedtheyown,andtheypayinterestcostsof£102perbedperweek;thismeansthat16%oftheweeklyfeespaidtotheseprovidersbylocalauthori*esorindividualsforresiden*alcaregoestowardspayingoffdebt.
• 6.Muchofthedebtloadedontothecarehomesbythelargestfor-profitprovidersisowedtorelatedcompaniesthatareoCenbasedoffshoreandathighratesofinteresti.e.aformofhiddenprofitextracFonwhichalsoavoidstax.
• Acrossthe26largestcarehomeprovidersatotalof£261millionofthemoneytheyreceivetoprovidecaregoestowardsrepayingdebt.Outofthis£117million(45%)arepaymentstorelatedcompanieswhichisaknownwayofavoidingtaxandhidingprofits.
• CHPI(2019)PluggingtheleaksintheUKcarehomeindustry.hOps://chpi.org.uk/wp-content/uploads/2019/11/CHPI-PluggingTheLeaks-Nov19-FINAL.pdf
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Comment from inside the industry
• Thegrowthofthecompanysectorhaschangedandthedistribu*onofnurserieshasshiNed,withmostinvestorsandownersfocusedonaffluentareasashigherfeescanbeachieved.No-onewillbuildindisadvantagedareasasthereisinsufficientsubsidyfromthegovernmentevenwiththepupilpremium.Therearealsosignificantsocialissueswhichcanbeverysignificantand*mecommitmentformanagerswhichalsomakesitlessaWrac*veandfeasible.Whenabusinessisacquired,italmostalwaysmeansafeeincreaseforparents.Inanaffluentarea,youmightgetprofitmarginsof35%;inlessaffluentareasitislikelytobe15-16%atbest.
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Comment from inside the industry
• Asthecompanieshaveexpanded,theyareincreasinglyrunbymenwhofocusonfiscalperformancewhichgiventhefocusongenderequalityandthepaygapseemsironicinhighlyfeminisedindustry.Thesenewwell-paidMDshavenoexperienceofthesector,oroftheimpactoftheirrapidacquisi*ons.Theysteerclearofdisadvantage,oranykindofcomplexity,anddonotunderstandthatmanychildrenhavemul*pleneeds–andthatnotmee*ngthemisadisasterbeingstoredupforthefuture.Specialneedsarenotprofitable.Andtheprofitsarebeinggainedattheexpenseofstaffwhoareearningverybasicwages.
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RecommendaJons for elder care
• Recommenda*on1:ATransparencyAct–carehomeprovidersshouldbemandatedtodisclosewheretheirincomegoes.• Recommenda*on2:Anewformregula*onisrequiredtopreventcarehomecompanieswithunsa*sfactoryfinancialmodelsfromprovidingcareintheUK.• Recommenda*on3:Capitalshouldbemadeavailablebythegovernmentfortheprovisionofnewnurseries.
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RecommendaJons for Childcare
• Annualplansforeachnursery,whichmustbeagreedbystaffandparents;• Introduceafeeceilingrelatedtohouseholdincome;• Introducequotasforvulnerablechildren;• Increasethepropor*onofqualifiedstaffifthenurseryistobegranteligible.• Broadenthemonitoringarrangementstoincludeownership• Putconcernfornatureandtheenvironmentatthecentreofthecurriculum