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1 change: 1 addition & 0 deletions changelog.d/1008-regional-childcare-corrections.changed.md
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Corrected the regional childcare planning page (docs/book/programs/gov/dfe/regional-childcare-plan.md) against current law, data and main: the Scottish two-year-old, SAAS, Childcare Offer, Flying Start and PSEP descriptions, the Childcare Grant calibration claim and the Microcosm UK geography.
157 changes: 100 additions & 57 deletions docs/book/programs/gov/dfe/regional-childcare-plan.md
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Expand Up @@ -14,25 +14,30 @@ and the broader [#1644 audit][issue-1644].

## What is modelled today

The current childcare coverage is captured in
[`policyengine_uk/programs.yaml`](https://github.com/PolicyEngine/policyengine-uk/blob/main/policyengine_uk/programs.yaml) (see the
[#1644 split into per-programme rows][issue-1644]) and works as follows:
The current childcare coverage is recorded in
[`policyengine_uk/programs.yaml`](https://github.com/PolicyEngine/policyengine-uk/blob/main/policyengine_uk/programs.yaml),
where [#1703](https://github.com/PolicyEngine/policyengine-uk/pull/1703)
split the old umbrella entry into per-programme rows after the
[#1644 audit][issue-1644]. Care to Learn and the Scottish funded ELC have
no row yet. Coverage works as follows:

- **UK-wide**: Tax-Free Childcare (HMRC); Universal Credit childcare
element (DWP); Working Tax Credit childcare element (legacy, HMRC
administered, modelled under `gov/dwp/`; see
administered, ended 5 April 2025, modelled under `gov/dwp/`; see
[tax-credits.md](./../dwp/tax-credits.md)).
- **England-only** (gate on `country == ENGLAND`):
Universal Childcare Entitlement (15 hours for 3- and 4-year-olds),
Extended Childcare Entitlement (working parents, now reaching down to
children aged nine months), Targeted Childcare Entitlement (2-year-olds
in families on qualifying benefits or low incomes), Care to Learn,
Student Finance England Childcare Grant.
in families on qualifying benefits, or on Universal Credit or tax
credits with income below a limit), Care to Learn, Student Finance
England Childcare Grant.
- **Scotland**: eligibility for the universal funded ELC for 3- and
4-year-olds (`scottish_funded_early_learning_childcare_eligible`,
including the statutory start-date rule for 3-year-olds) and its 1,140
hours a year, added in [#1643][pr-1643]. No funding value is attached
yet, so it does not reach household income.
4-year-olds (`scottish_funded_early_learning_childcare_eligible`, with
the statutory start date for 3-year-olds taken as an input,
`scottish_funded_early_learning_childcare_start_date_reached`) and its
1,140 hours a year, added in [#1643][pr-1643]. No funding value is
attached yet, so it does not reach household income.
- **Wales, Northern Ireland**: no programmes modelled.

## Proposed scope by jurisdiction
Expand All @@ -41,16 +46,25 @@ The current childcare coverage is captured in

The [#1644 audit][issue-1644] flagged three Scottish gaps:

1. **Eligible-two-year-old strand** of the funded ELC programme
(vulnerable or low-income 2-year-olds under the
[Provision of Early Learning and Childcare (Specified Children)
(Scotland) Order 2014][sssi-196-2014]). Modelled the same way as the
3- and 4-year-old strand but gated on UC, tax credits or other
qualifying benefits.
2. **Student Awards Agency Scotland (SAAS) Lone Parents' Grant,
Dependants' Grant, and Childcare Fund** for full-time HE students:
the Scottish equivalent of Student Finance England's Childcare
Grant. Income-tested.
1. **Eligible-two-year-old strand** of the funded ELC programme:
2-year-olds who are looked after, under a kinship care order or with
an appointed guardian ([Children and Young People (Scotland) Act 2014
s. 47(3)][cyp-47]), or whose parent receives a qualifying benefit
under the [Provision of Early Learning and Childcare (Specified
Children) (Scotland) Order 2014][ssi-196-2014]. It would be modelled
the same way as the 3- and 4-year-old strand but gated on those
conditions. The qualifying benefits include Universal Credit with
earned income of up to £850 an assessment period; Child Tax Credit
was removed from the list from 6 April 2025 ([SSI 2025/82][ssi-82-2025]).
2. **Student Awards Agency Scotland (SAAS) support for student
parents**: the Childcare Funds that universities and colleges pay out
(a Lone Parents' Childcare Grant of up to £1,215 a year, not
income-assessed, plus discretionary help assessed on need), the
closest Scottish equivalent of Student Finance England's Childcare
Grant ([SAAS childcare fund guidance, 2026 to 2027][saas-childcare]);
and SAAS's income-assessed Lone Parents' Grant (up to £1,305). The
audit also listed SAAS's Dependants' Grant, but that supports adult
dependants rather than children.
3. **Support for young parents in further education**, the role Care to
Learn plays in England. The [Education Maintenance Allowance][scot-ema]
still runs in Scotland for 16- to 19-year-olds, applied for through
Expand All @@ -61,14 +75,21 @@ The [#1644 audit][issue-1644] flagged three Scottish gaps:

The audit identified four Welsh programmes:

1. **Childcare Offer for Wales**: 30 hours a week for working parents
of 3- and 4-year-olds (term time plus some holiday weeks).
1. **Childcare Offer for Wales**: up to 30 hours a week of combined
nursery education (at least 10 hours) and childcare, for up to 48
weeks a year, for 3- and 4-year-olds of working parents or parents in
further or higher education
([gov.wales](https://www.gov.wales/get-30-hours-childcare-3-and-4-year-olds)).
Modelled the same as the English Extended Childcare Entitlement
with Welsh-specific income tests and hour caps. Statutory basis:
[Childcare Funding (Wales) Act 2019][wales-act].
2. **Flying Start**: a universal offer in disadvantaged areas for
2- to 3-year-olds (12.5 hours a week). Eligibility is geographic,
based on lower layer super output areas.
2. **Flying Start**: funded childcare for 2- to 3-year-olds in some of
the most disadvantaged areas of Wales (12.5 hours a week, 39 weeks a
year), expanded in phases since 2022 with the aim of reaching all
2-year-olds
([Welsh Government guidance](https://www.gov.wales/flying-start-childcare-guidance-html)).
Eligibility is geographic, based on lower layer super output areas
chosen by each local authority.
3. **Student Finance Wales Childcare Grant**, parallel to the English
Childcare Grant.
4. **Welsh EMA**, parallel to the Scottish EMA.
Expand All @@ -77,8 +98,12 @@ The audit identified four Welsh programmes:

The audit identified four NI programmes:

1. **Pre-school Education Programme (PSEP)**: 12.5 hours a week in the
year before school. Universal.
1. **Pre-school Education Programme (PSEP)**: a funded place in the
immediate pre-school year for every child whose family wants one.
In December 2024, 60% of children had 12.5 hours a week and 40% had
22.5 hours; the Department of Education is moving places to 22.5
hours, starting with 77 settings from September 2025
([Department of Education](https://www.education-ni.gov.uk/news/education-minister-announces-first-step-major-expansion-pre-school-education-provision)).
2. **Sure Start**: younger children in disadvantaged areas, including a
programme for 2-year-olds.
3. **Student Finance NI Childcare Grant**.
Expand All @@ -88,10 +113,11 @@ The audit identified four NI programmes:

For each new programme:

- New parameter tree under `parameters/gov/<region>/<programme>/`
capturing the income tests, hours offered, and weekly funding rates.
- New variable(s) under `variables/gov/<region>/<programme>/` gated on
the appropriate `country == ...` check.
- New parameter tree under the administering body (as #1643 did with
`parameters/gov/scottish_government/<programme>/`) capturing the
income tests, hours offered, and weekly funding rates.
- New variable(s) under the matching `variables/gov/<body>/<programme>/`
folder, gated on the appropriate `country == ...` check.
- A `<programme>_eligible` companion variable that the new programme
variable composes with the rate parameter, the same pattern as the
English entitlement trio.
Expand All @@ -100,8 +126,10 @@ For each new programme:

### Structural items deferred to this work

The [#1644 audit][issue-1644] also flagged two structural items that
become more pressing once the regional programmes land:
The [#1644 audit][issue-1644] also listed four structural findings.
#1703 has since split the `programs.yaml` umbrella row, and one (a
shared `in_england` helper) is minor; the other two become more pressing
once the regional programmes land:

- `weeks_per_year` and `childcare_funding_rate` currently sit at
`gov.dfe.*` root but encode English term-week and funding-rate
Expand All @@ -118,19 +146,25 @@ per-programme work.

## Data needs

Most regional programmes are point-in-time per-hour funding rather
than per-household payments, so the data side is comparatively easy:

- **FRS** provides `region` and `country` at the household level,
enough to gate eligibility.
- **Welsh Government Statistical Bulletins** publish Flying Start
and Childcare Offer caseloads by local authority.
- **Scottish Government Childcare and Early Years statistics** provide
Scottish funded ELC caseloads.
Several regional programmes (the Scottish two-year-old strand, the
Childcare Offer, Flying Start and PSEP) are funded hours rather than
cash payments, so their data side is comparatively easy:

- **FRS** provides the household's `region`, from which the model
derives `country`; that is enough to gate eligibility.
- **Welsh Government** publishes Flying Start official statistics with
local authority breakdowns, and an annual Childcare Offer for Wales
report that gives the number of children using the Offer by local
authority.
- **Scottish Government Funded Early Learning and Childcare Statistics**
(the annual ELC census) provide funded ELC registrations, including
eligible two-year-olds.
- **Department of Education NI** publishes PSEP caseloads.
- The SAAS, Student Finance Wales and NI childcare grants need the same
treatment as the English `childcare_grant`: calibration against
published award totals.
- The SAAS, Student Finance Wales and Student Finance NI childcare
grants need published award totals to check the modelled amounts
against. The English `childcare_grant` has no calibration target yet:
the Student Loans Company targets in policyengine-uk-data cover
Parents' Learning Allowance and Adult Dependants' Grant only.

The aggregating challenge is choosing whether to expose **subsidised
hours** or **subsidised cost** as the primary household-level
Expand All @@ -144,27 +178,36 @@ entitlements already enter `household_benefits` and `gov_spending`.
splits Universal / Extended / Targeted), or as one variable with the
age-and-eligibility logic inside? Recommendation: separate, mirroring
the English pattern for queryability.
- Welsh Flying Start is geographic. Microcosm UK, the dataset being
built to replace the Enhanced FRS, assigns each household in England
and Wales to a 2021 Output Area, which nests in LSOAs, so eligibility
by area becomes possible on that dataset once the Flying Start area
list is sourced.
- Welsh Flying Start is geographic. Microcosm UK, the default UK dataset
in the policyengine.py bundle since release 6.10.0 (21 October 2026),
places each household in its local-area build in one atomic area
(a 2021 Output Area in England and Wales, a 2022 Output Area in
Scotland, a 2021 Data Zone in Northern Ireland) and derives larger
geographies such as LSOAs from it. The national file carries no small
areas. Eligibility by area becomes possible on the local-area build
once the Flying Start LSOA list is sourced.
- EMA ended in England but still runs in Scotland, Wales and Northern
Ireland. Today `child_ema` and `adult_ema` are reported amounts with
no formula. Should the devolved schemes be modelled under the existing
`gov.dfe.care_to_learn` umbrella or as separate regional schemes?
Ireland. Today `child_ema` and `adult_ema` (under
`variables/gov/dwp/`) are reported FRS amounts with no formula. Should
the devolved schemes sit alongside the England-only
`gov.dfe.care_to_learn` tree, or be separate schemes under each
administration?

## References

- Audit: [#1644](https://github.com/PolicyEngine/policyengine-uk/issues/1644), the full childcare coverage audit.
- Tracking: [#1008](https://github.com/PolicyEngine/policyengine-uk/issues/1008), the original Scotland, Wales and NI gap report.
- Recent landed work: [#1643][pr-1643], Scottish universal funded ELC.
- Existing England docs (for the pattern to mirror): the entitlement variables under [`policyengine_uk/variables/gov/dfe/`](https://github.com/PolicyEngine/policyengine-uk/blob/main/policyengine_uk/variables/gov/dfe).
- Recent landed work: [#1643][pr-1643], Scottish universal funded ELC; [#1703](https://github.com/PolicyEngine/policyengine-uk/pull/1703), per-programme `programs.yaml` rows.
- Existing England implementation (the pattern to mirror): the entitlement variables under [`policyengine_uk/variables/gov/dfe/`](https://github.com/PolicyEngine/policyengine-uk/blob/main/policyengine_uk/variables/gov/dfe).
- Welsh childcare statute: [Childcare Funding (Wales) Act 2019][wales-act].
- Scottish eligible-2-year-old statute: [SSSI 2014/196][sssi-196-2014].
- Scottish eligible-2-year-old legislation: [Children and Young People (Scotland) Act 2014 s. 47(3)][cyp-47] and [SSI 2014/196][ssi-196-2014], as amended by [SSI 2025/82][ssi-82-2025].
- SAAS, [University Childcare Fund guidance, 2026 to 2027][saas-childcare].

[issue-1644]: https://github.com/PolicyEngine/policyengine-uk/issues/1644
[pr-1643]: https://github.com/PolicyEngine/policyengine-uk/pull/1643
[wales-act]: https://www.legislation.gov.uk/anaw/2019/1/contents
[sssi-196-2014]: https://www.legislation.gov.uk/ssi/2014/196/contents/made
[ssi-196-2014]: https://www.legislation.gov.uk/ssi/2014/196/contents
[ssi-82-2025]: https://www.legislation.gov.uk/ssi/2025/82/made
[cyp-47]: https://www.legislation.gov.uk/asp/2014/8/section/47
[saas-childcare]: https://www.saas.gov.uk/files/311/saas-childcare-fund-guidance.pdf
[scot-ema]: https://www.mygov.scot/ema
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