PACEY calls for reversal of 'related children' rule

PACEY has been campaigning for over a decade for childminders to be permitted to deliver funded early education and childcare places to children who are related to them. We regularly hear from childminders and families affected by this unfair rule, and we are urging the new government to overturn the rule.  

We strongly believe that the ban in England on childminders providing funded places to related children is unfair and we will not stop campaigning until the ban is overturned.

We continue to raise this issue with government ministers, senior officials and parliamentarians whenever we can as a matter of urgency, highlighting case studies of people affected by the rule. We highlighted it as a key area for action in our Manifesto for Childminders in 2024 and you can read our policy briefing on the issue here.

What is the problem and solution in England?

The definition of 'childcare' in the Childcare Act 2006 excludes care provided for a child by parents or any other relatives. In England, the Government has interpreted this to mean that childminders cannot deliver the early years and childcare entitlements to any children related to them by blood or marriage, whom they may already be looking after. 

Why is this unfair?

  • Other important forms of childcare support in England do permit parents to use related childminders. This includes Tax-Free Childcare, childcare vouchers, Working Tax Credit and Universal Credit, as long as they are Ofsted-registered and caring for the child outside the child’s home. 
  • The ban on related children in England is unique to childminders. Individuals working in or owning a nursery, school or pre-school are permitted to claim the entitlement for related children. 
  • The ban currently affects a large number of childminders, and will continue to do so in the future. It’s estimated that childminders lose out on around £5,000 a year for each 30-hour place due to the rule, and 86% of our 2024 survey respondents said they support a change to this rule.
  • Many relatives of registered childminders have been forced to move to new settings to take up their entitlement. This not only greatly disrupts continuity of care, but it can be particularly detrimental if the child has a disability or SEND.
  • It creates a major barrier to engaging more childminders in the delivery of the funded entitlement, particularly with the recent expansion of funded provision. In a PACEY poll in October 2023, 72% of our childminder members said expanding the funded scheme to cover related children would incentivise them to offer more funded places.
  • Childminders in Wales are permitted to deliver funded places to related children who do not live with them. Following lobbying from PACEY Cymru, the Welsh Government have confirmed a change in policy to allow registered childminders to deliver the Childcare Offer to a child who is also a relative but who does not live with them.

What is the solution?

The Government should harmonise the criteria for using childcare provided by relatives, so that parents in England can use related childminders for the early education and childcare entitlements, just as they can for Tax-Free Childcare and the childcare element of Working Tax Credit/Universal Credit, as long as the childminder is registered with Ofsted and the care is being provided outside the child’s home.  

The registration and inspection process with Ofsted is sufficiently rigorous that a person would be extremely unlikely to be motivated and able to successfully pass through it if she or he were not a genuine childminder. Indeed, there is no evidence that this is happening in relation to tax credits, which provides a much greater degree of financial support.

How can you help?

Contact your local MP - you can do this in three easy steps:

  1. Find out who your local MP is and their contact information.
  2. Download PACEY's template letter. Use this as a starting point, and feel free to edit this as much as you would like. Do not forget to explain how the ban has personally affected you and your family.
  3. Email or post your letter to your local MP and the current parliamentary Under Secretary of State for Children and Families, Stephen Morgan MP

TOP TIP: If you are sending a letter, why not get the children in your setting involved by decorating the envelope? This will make it stand out in their in-tray and get their attention… And it’s a great way to teach the children about political activity and campaigning!

If you’d rather contact your MP publicly on social media, X (Twitter) or Facebook is a great place to get in touch with them and raise awareness. Find their username/handle and use #letsmakeithappen and tag @PACEYChildcare (X/Twitter) or @PACEYlocal (Facebook) in your post.