Following a complaint to the Office for Statistics Regulation, the Department for Education has said it will no longer suggest parents could save £40 a week on childcare costs by reducing ratios in early years settings.
As part of its childcare ratios consultation launch last month, the Department for Education (DfE) claimed that relaxing adult: child ratios from 1:4 to 1:5 could result in savings of 15 per cent or £40 a week for parents of two-year-olds.
The DfE said the cost saving figure was based on the following calculation, which was not included in any public announcements, ‘staff costs account for 74 per cent of overall costs in early years settings. Moving to a ratio of 1:5 for two-year-olds would cut staff costs by 20 per cent. 20 per cent x 74 per cent = 15 per cent. The average weekly cost of an early years place is £265 and 15 per cent of £265 is £40 – parents could therefore save £40 per week.’
