Agenda item

Report of the Executive Director, Community & Children’s Services.

The Committee considered a report of the Executive Director, Community & Children’s Services concerning the City of London Corporation Childcare Policy and Family Service Arrangements.

The Chair introduced the item, noting the high level of interest and engagement from Members and the public. It was noted that the report followed a request made in January for a formal childcare policy and further public consultation, which received 151 responses. The policy aimed to promote fairness, equity, accessibility, and choice, and proposed an expansion of the Childcare Accessibility Scheme (CAS) by raising the household income threshold to £60,000p.a. This would be funded through Section 106 contributions and reviewed annually. In addition to the CAS, the report recommended extending the subsidy for 0–2 childcare provision at The Aldgate School until August 2027. This would allow time to assess the impact of upcoming Department for Education changes, particularly the introduction of a 30-hour free entitlement from September 2025. The Executive Director emphasised the importance of maintaining valued childcare provision in areas of disadvantage and confirmed that the £174,000 annual subsidy was separate from Section 106 funding and available for future use, subject to Member decisions.

An amendment was moved by Common Councillor Williams and seconded by Common Councillor Pritchard, that Members;

a)    Approve an increase to the household income threshold for the Childcare Accessibility Scheme to £60k as set out in the draft policy;

b)    Refer the remainder of the policy back to Officers to thoroughly reflect the requests from this committee as to alternatives - (for example meeting the broad policy objectives set out by a differential pricing model in affordable childcare at The Aldgate School)

c)     Seek the presentation at a future meeting of this committee of alternatives in the childcare policy which allow members to vote transparently on the future support for, or withdrawal of funding for affordable childcare to The Aldgate School.

Mr Williams explained that the amendment sought to approve the CAS expansion but defer adoption of the full childcare policy to allow further consideration of long-term support for The Aldgate School. He noted that the current draft policy might be inconsistent with continued support for the school-based nursery and that a unified policy decision was needed. Officers responded that the CAS and school subsidy were distinct and that the policy allowed for future flexibility.

The amendment was then discussed by the Committee with some Members in support for the need for a comprehensive policy that included long-term funding for The Aldgate School, while others emphasised the importance of providing immediate certainty to families and stakeholders. Officers clarified that all options had been considered and that the proposed two-year extension would allow time to assess the impact of government policy changes and develop a sustainable model. Concerns were raised about the accuracy of data regarding the number of City children using the provision, which was clarified by the school’s representatives.

The amendment was put to a vote, with 12 for, 12 against and 0 abstentions. In accordance with Standing Order 28.1(c), the Chair exercised a casting vote against the amendment, the amendment was not carried.

The Committee then returned to the substantive recommendations. During the discussion, it was necessary for figures cited by a Member to be corrected, and these were certified as accurate by the Director of Community and Children’s Services. Officers and school representatives clarified that while the number of City children fluctuates, the provision serves a broader community and supports the Corporation’s strategic aims. Members also discussed the potential for future funding sources, including additional Section 106 contributions and neighbourhood funding.

The Committee acknowledged the importance of aligning with evolving government policy, particularly the recent announcement of increased investment in school-based nurseries. Officers emphasised that the two-year extension would allow time to assess the impact of these changes and ensure the Corporation’s approach remains responsive and sustainable.  Officers confirmed that there was no suggestion of existing funds having been misspent. 

The recommendations were carried, and the Committee expressed a collective commitment to supporting families, maintaining valued childcare provision, and working collaboratively with The Aldgate School, with the aim of providing a sustainable funding model for childcare going forward.

RESOLVED – That Members,

a)    Note the findings of the 0-2 childcare consultation March – May 2025 in Appendix Two

b)    Approve the Childcare Policy in Appendix One

c)     Approve that up to £174,000 funding of 0-2 childcare at The Aldgate School continues for a further year until August 2027.

d)    Note the commitment to work with The Aldgate School to secure a financially viable future model for childcare delivery.