Comment
Childcare as necessary infrastructure: implications for developer contributions
A perfect storm of rising demand and prices coupled with the wider cost of living crisis[1] has led to recognition of childcare as ‘necessary infrastructure’[2] through a proposed amendment to the Levelling Up Bill. If passed, this means that councils will formally be able to include childcare within their local infrastructure levy and request developer contributions for provision including wrap around care for children aged up to 11 years, to reflect impacts on local provision and support sustainable growth.
While requests for contributions towards state nursery places are not new, there are numerous aspects which must frame such requests as well as mechanisms which can be used by developers to promote positive planning and the delivery of sustainable communities.
For developer contribution requests to qualify they must be in accordance with the Regulation 122 of the CIL Regulations 2010 (As Amended), namely they must be:
- (a)necessary to make the development acceptable in planning terms;
- (b)directly related to the development; and
- (c)fairly and reasonably related in scale and kind to the development.
Considerations and limitations
With regards to education more widely we are still awaiting a much-delayed update from the Department for Education on a highly anticipated standardised approach to understanding and mitigating impact. Should this publication still be forthcoming, it is expected it would now also need to incorporate childcare.
Without the existence of this guidance there are several pitfalls and considerations to be aware of in understanding the potential impact of a residential scheme on demand for childcare and the developer contributions which could reasonably be requested.
Childcare supply and demand
Childcare supply and demand is difficult to assess due to variations in attendance from part time to full time, half days, wraparound care and split weeks. This is further exacerbated by unknown birth rates in future years. For primary and particularly secondary education the recent birth data provides a starting point but this is not available to the same degree for nursery due to the younger age at which children attend.
The split in demand between private and state provision and the starting age of each, with private nurseries typically accepting children from a younger age than state which may operate more as a pre-school from the age of three.
Location
Locational preference for childcare may reflect a greater range of factors than for primary and secondary education where place of residence is the main consideration. A family’s choice of childcare may be based on place of work, commuting geography (train station location for example), place of residence of wider support network such as grandparents as well as the child’s place of residence or school. This may again make it difficult to fully understand the implications of demand arising from housing growth.
Developer contributions
The current unmet demand causing price rises will not be rectified by developer contributions which should be requested only to meet the development’s own demand. Developer contributions should not be seen as a panacea to an existing issue which itself needs to be resolved.
It will be important to be alert to the potential for duplication of contributions where there is a local developer levy in place and developer contributions are also requested.
Avoiding the pitfalls through early engagement and action
Consideration of these factors should be based on existing trends, but at present there is a concerning lack of consistent data with which to understand them. This will need to be addressed to enable effective planning.
Ways in which developers can proactively respond to these issues include:
- Making appropriate allocation for land and space within new settlements. A single new settlement may require a number of nursery or childcare settings, some of which may be affiliated with primary schools, to provide choice of location and type.
- Understanding nearby provision in urban settings to identify the requirement for additional, expanded, relocated or funded places.
- Early engagement with the relevant authorities is advisable to understand the local context and approach to be taken, and build a co-ordinated response. Likewise engaging in any related consultation on developer contributions planning documents would be advantageous.
If you require advice or support with regards to education or other social infrastructure commitments, please contact Amy Gilham or Andrew Lowe.
4 January 2023
[1] https://www.theguardian.com/money/2022/dec/12/childcare-should-be-classed-as-necessary-infrastructure-say-mps
[2] https://www.theguardian.com/politics/2022/dec/13/ministers-back-down-over-childcare-infrastructure-issue-in-commons
