PRESS RELEASE
12 December 2024
Public policy evaluation
EARLY CHILDHOOD CARE POLICY
Early childhood care policy covers all actions aimed at developing childcare solutions for
children under the age of three, i.e. 2.17 million children in January 2023. In the 1970s,
subsidies were granted to parents looking after their children and to childminders. A key
priority has been developing childcare options to allow mothers to return to work shortly
after childbirth. Childcare policies have primarily focused on supporting childminders to
develop individual childcare and on establishing a clear legal framework for a diverse range
of nursery-based childcare, which accounts for the majority of collective care. All of this
financing, paid by the Family Allowance Funds (
Caisse d’allocations familiales, CAF
and the
Agricultural Social Security Fund (
Mutualité Sociale Agricole
), by local authorities or by the
State, accounts nearly 90 % of total early childhood care expenditure. The investigation,
conducted by the Court of Auditors and the regional audit chambers of
Bourgogne-Franche-
Comté
,
Bretagne
and
Pays-de-la-Loire
, was based on eleven audits of local authorities and
organizations. It aimed to measure the effectiveness of the policy, identify the difficulties
encountered and provide recommendations for remedying them.
A diverse range of childcare options supported by substantial public funding
The objectives and stakeholders involved in early childhood care policy have diversified, while
the system has become increasingly complex. As opposed to parental childcare, formal
childcare refers to legally regulated childcare services supported by public authorities, and
provided by public, non-profit or for-profit private operators. A regularly reaffirmed principe,
the free choice of childcare arrangements is understood to mean that all types of childcare
should be available to all parents. However, this principle is sometimes interpreted as ensuring
access to all forms of childcare without financial barriers, an unrealistic expectation given public
funding constraints. Some schemes provide direct funding to childcare establishments, in
particular nurseries benefiting from the single service provision (
Prestation de service unique,
PSU
), while others provide financial support for families accessing various forms of childcare by
granting aid or tax credits. In 2022, public funding for childcare amounted to €16.1 billion in
2022, representing nearly 90 % of all childcare-related expenditure. At the end of 2022,
1.31 million formal childcare places were available for 2.17 million children under the age of 3,
resulting in a coverage rate of 60.3 %. The system appears complex due to the number of
schemes and interactions between stakeholders.
The availability and quality of childcare services vary by region
Local early childhood care policies have led to a diverse but unevenly distributed range of
services, failing to meet one-fifth of families demand. The proportion of parents with children
under the age of 3 who receive neither a childcare place nor financial compensation for
parental care rose from 23.3 % in 2014 to nearly 29 % in 2022. This shortage is the result of an
overall lack of supply, compounded by regional disparities areas with higher living standards
tend to have more collective childcare facilities, while those with lower living standards rely on
individual childcare. Additionally, the growing number of childminders leaving the profession
and the shortage of qualified childcare professionals are, at the same time, holding back the
development of childcare provision for young children, both in terms of quantity and quality,
undermining the government's objective of creating 200,000 formal childcare places by 2030.
The system’s complexity also creates barriers for socially or culturally disadvantaged families,
while allocation processes remain insufficiently transparent.
Increasingly unsustainable public financing, limiting affordable access for all families
Families with modest incomes tend to use formal childcare less often due to cost barriers. . The
difference in out-of-pocket expenses is significant: nurseries funded by the universal single
service benefit (
Prestation de service unique, PSU
) are more affordable for low-income families,
while childcare provided by childminders is considerably, more expensive. However,
childminders account for the largest share of available places, particulary in towns where
lower- income families reside. Despite being more affordable for families, PSU-funded
nurseries are the most expensive form of childcare for public finances. The upcoming reform
of the additional childcare allowance, set to take effect in 2025, aims to reduce this inequality
of access. However, public spending on childcare remains difficult to control. Several ongoing
or proposed initiatives – such as increasing the number of adults per child in nurseries- could
further strain public finances, potentially adding billions of euros in costs annually.
Childcare as a tool for balancing work and family life for most working parents
The extent to which childcare supports work-life balance depends on parents’ employment
status. The more parents work, the more likely their children are to be in formal
childcare – reaching up to 82 % when both parents are employed. However, the employment
rate of mothers decreases with the number of children increases. Companies vary in the
support they offer employees returning to work from maternity or parental leave.
Employer- led parenting support policies are often driven by the need to attract and retain
working parents. The rise of remote work has also introduced new possibilities in this area.
Maternity leave for a first or second child is relatively short in France compared to the OECD
countries average. Given the shortage of childcare professionals, extending maternity leave by
one month and improving financial support for parental childcare could reduce the demand for
formal childcare by approximately 105,000 places, at a net cost of around €710 million per year.
Read the report
PRESS CONTACT:
Julie Poissier
Communications Director
T
+33 (0)6 87 36 52 21
julie.poissier@ccomptes.fr
@Courdescomptes
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