Childcare: Finance
The question
To ask the Secretary of State for Education, whether the Government has considered piloting or introducing an exemption to childcare funding rules where a relative is a registered childminder meeting all regulatory requirements.
Answered by Olivia Bailey
Parents are free to choose the childcare that is right for them and their children, and childminders are not prevented from caring for related children.
However, the restriction on funding relatives is set out in the Childcare Act 2006. Section 18(4) of this Act specifically excludes care provided for a child by a parent or other relative.
Allowing childminders to receive funding for looking after related children would not be an effective use of public money and may have a negative impact on the viability of existing childcare businesses.
A local authority can choose to fund a childminder providing childcare for a related child, but this would have to be from local authority funds independent of the dedicated schools grant.
Although childminders cannot receive entitlements funding for related children, flexibilities within staff to child ratios can be used to enable childminders who are caring for related children to avoid limiting the income they can earn.
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