Estyn report highlights the significant contribution of early years providers in communities and the need for stronger support to address the impact of poverty on young children’s development

Local authorities must work more effectively with early years education providers to address the impact of poverty on children, according to a report published today by Estyn. The report examines how well early years settings and schools use their resources and funding to help children from disadvantaged backgrounds overcome barriers to learning and well-being.

Estyn’s report, The impact of poverty on educational attainment, support, provision and transition for early education, reveals that access to early education varies widely across Wales, leading to inequities for families, particularly in choice of nursery provision. The report shows that while many early years providers are building supportive relationships with families and actively addressing immediate needs, they often lack specific guidance from local authorities on how to meet the developmental needs of children affected by poverty and disadvantage.

Estyn’s findings show that many early years providers build strong, supportive relationships with children and families, making a significant difference in communities facing poverty and hardship. These settings are providing practical help to families in need, often in collaboration with local charities and organisations to offer essentials such as food, toys, and school uniforms. This tailored support has helped create nurturing, inclusive environments that benefit children’s social and emotional development.

However, the report highlights issues with the Early Years Pupil Development Grant (EYPDG) funding system. Many non-maintained early years settings used this funding effectively to support children’s language and social skills. However, inconsistent funding formulas meant that settings in high-poverty areas did not always receive adequate support, limiting the resources available to tackle disadvantage effectively. In most schools, EYPDG funding has helped to sustain early years provision by allowing for additional staff in classrooms. Some schools have used the grant to support specific interventions for speech, language, and emotional well-being. However, in cases where funding was pooled with general PDG funds, it was harder to ensure that support was targeted specifically at children most affected by poverty.

Owen Evans, His Majesty’s Chief Inspector, said:

“Our report highlights the importance of equitable access to early years education and support for families facing poverty. It is clear that many early years providers are doing vital work to help disadvantaged children, but more targeted support is needed to make a meaningful difference.”

The report provides recommendations for local authorities, school leaders, and the Welsh Government to improve the effectiveness of support and funding for early years providers. It includes suggestions to better target EYPDG funding and to offer more professional learning opportunities for staff to help them meet the needs of children impacted by poverty.

In addition to its findings and recommendations, the report includes examples of effective practice to support early years providers in their work, helping ensure that children from disadvantaged backgrounds have the best possible start in life.