ASSESSMENT OF THE BENEFITS AND COSTS OF
OUT OF SCHOOL CARE
The Scottish Executive
FINAL REPORT
Consultant’s Report
February 2003
CONTENTS
SECTION
PAGE
EXECUTIVE SUMMARY
(i) – (vii)
1
INTRODUCTION.................................................................................. 1
2
APPROACH AND METHODS ................................................................. 6
3
OUT OF SCHOOL CARE IN THE UK ..................................................... 18
DEFINITIONS OF OUT OF SCHOOL CARE .................................................. 18
POLICY BACKGROUND TO OUT OF SCHOOL CARE IN THE UK ........................ 23
THE BENEFITS OF OUT OF SCHOOL CARE ................................................ 28
THE ECONOMIC BENEFITS OF OUT OF SCHOOL CARE .................................. 29
THE SOCIAL BENEFITS OF OUT OF SCHOOL CARE ...................................... 38
CONCLUSION .................................................................................. 51
4
OUT OF SCHOOL CARE - AN INTERNATIONAL REVIEW ....................... 54
INTRODUCTION ................................................................................ 54
INTERNATIONAL DEFINITIONS OF OUT OF SCHOOL CARE ............................. 55
THE CONTENT AND POLICY CONTEXT OF OSC PROVISION ........................... 59
THE BENEFITS OF OSC- INTERNATIONAL EVIDENCE ................................... 71
ECONOMIC BENEFITS OF OSC .............................................................. 72
SOCIAL BENEFITS OF OSC................................................................... 76
CONCLUSION .................................................................................. 82
CHAPTER CONCLUSION ...................................................................... 85
5
THE COSTS OF OSC: MEASURING THE ECONOMIC IMPACT ................. 88
INTRODUCTION ................................................................................ 88
ECONOMIC ARGUMENTS FOR PUBLIC INVESTMENT: OSC SERVICES AS ECONOMIC
CONTRIBUTORS ................................................................................ 89
THE ECONOMIC BENEFITS OF SETTING UP AND PROVIDING OSC .................... 90
CONSTRAINTS ON AND QUALIFICATIONS TO THE BENEFITS OF OSC PROVISION ... 96
THE COST OF SETTING UP AND PROVIDING OSC: THREE MODELS ............... 100
A COST/BENEFIT ANALYSIS OF THE THREE MODELS ................................. 106
ECONOMIC BENEFITS OF OSC PLACES ................................................... 109
CONCLUSION ................................................................................ 113
6
CONCLUSION ................................................................................. 118
SUMMARY OF FINDINGS .................................................................... 118
AREAS FOR CONSIDERATION .............................................................. 121
BIBLIOGRAPHY ......................................................................................... 126
Appendix 1:
Assessment of Benefits and Costs of Out of School Care
Appendix 2: Summary of the Study Specifications, Approach and Tasks
Appendix 3: Evidencing the Economic and Social Benefits of OSC
(i)
Assessment of the Benefits and Costs of Out of School Care
FINAL REPORT
EXECUTIVE SUMMARY
The Study
The
Scottish
Communication
Executive
Division
Education
Information,
commissioned
Blake
Analysis
Stevenson
Ltd
and
to
conduct an assessment of the costs and benefits of OSC in Scotland.
The study included:

the development of an assessment framework setting out
the full range of potential social and economic benefits
and outcomes of OSC;

a critical review of UK and international research evidence
on the benefits of OSC;

a synthesis of available evidence concerning labour
market impacts;

an assessment of the cost of provision of OSC.
Methods
The
methodology
used
to
conduct
this
study
involved;
the
development of frameworks detailing the potential benefits and costs
of OSC, literature reviews of existing research evidence from the UK
and abroad and an assessment of the costs associated with the
provision of OSC. Underpinning these elements of the analysis was the
development of a cost/benefits analysis framework to assess the
economic and social benefits to parents, children, employers, schools
and the community.
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The study also highlighted methodological issues associated with
assessing the benefits and costs of OSC. Three key issues were:

Limited data and evidence on the impacts of OSC and a tendency
for conclusions to be premised on assumptions;

Methodological difficulties to draw a distinction between the
impact of OSC and the impact of a range of other factors such as
family status, other types of childcare and the environment;

Lack of longitudinal studies which are considered the most
useful methodological approach to assess impact, especially
over the longer term.
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Definitions of OSC
The literature review showed that no one definition of OSC exists
either in the UK or overseas. Within the UK, there is a general
consensus that OSC provides a safe place for children to be cared for
whilst their parents work or train. This definition however varies by
age of child, type of provision and setting.
The review of the international literature indicates that OSC outwith
the UK has broader dimensions and is more often focused on
educational achievement and study support. It was also apparent that
there is great diversity in the ways in which OSC is delivered and the
ethos informing the type of services provided. These varying
definitions and approaches make comparison more difficult.
The Economic Benefits of OSC
The review of existing literature evidenced the following economic
benefits for parents and carers, children, the community and
employers. Parents and carers were the group most likely to
experience economic benefits.
Parents and carers
–
access to employment, education and training;
–
increased or stable earnings;
–
decreased dependency on benefits;
–
increase in working hours;
–
movement from part-time to full-time working;
–
increased ability to do job and increased satisfaction;
–
less unplanned absences;
–
promotion or better job;
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Children
–
Assumed economic benefits from parents access to
earnings.
Communities
–
Contribute
to
tackling
poverty,
disadvantage
and
regeneration;
–
Creation of positive environment for children;
–
Employment creation and opportunities in OSC.
Employers
–
Reduction in recruitment costs;
–
Better retention rates e.g. mothers more likely to return
from maternity leave;
–
Investment in training and staff development programs
recouped;
–
Reduction in unplanned absences;
–
Wider pool of potential recruits for jobs;
–
Employment creation in OSC.
The Social Benefits of OSC
The study also illustrated a wide range of social benefits which
extended to schools and service provision. The main benefits were
seen to be experienced by children.
Children
–
Opportunities for play and fun;
–
Safe and secure environment;
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–
Social interaction with children of different ages, ethnic
backgrounds and with additional needs, and particularly
important for 'only' children and those from rural areas;
–
Increased confidence, self-esteem and motivation;
–
Broadens experiences and skills;
–
Curriculum enrichment and learning environment;
–
Health benefits through healthy eating and physical
activity;
–
Consultation opportunities with children.
Parents and carers
–
Support and advice;
–
Respite and 'time off';
–
Aids physical and mental health of families through stress
reduction;
–
Social interaction through work.
Communities
–
Development of citizenship;
–
Alternative to anti-social behaviour;
–
Social inclusion of families;
–
Linkages of families and schools to community.
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Schools and service providers
–
Increased popularity of school and better relations with
community;
–
Increased integration of services;
–
Compliments school learning environment.
Employers
–
Less stressed employees.
This assessment of the benefits of OSC revealed several weaknesses
and gaps in the literature. Overall there is a lack of robust evidence to
clearly demonstrate many of the benefits of OSC and much of the
literature is characterised by either assumptions about the benefits or
with anecdotal evidence. There is little or no specific evidence of the
costs associated with the provision of OSC. However, the literature
does provide some useful information about the range of factors that
will impact on the costs of OSC.
The review did show that OSC brings about both economic and social
benefits and impacts, often to the most disadvantaged areas and
households and identified that in Scotland, and the rest of the UK,
there remains a significant level of demand for OSC which is currently
not met by supply.
The Costs of OSC: Measuring the Economic Impact
The study conducted an analysis of the economic costs and benefits of
OSC provision and provided several examples of tools to calculate the
costs/benefits of OSC.
It is not possible, however, to offer precise
monetary figures in all places as OSC provision is not homogenous but
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varies in terms costs/benefits across a wide range of key variables
such as location and type of provision.
The impact of these variables are some of the most important
determinants on the sustainability of OSC and its ability to provide
high quality childcare which is affordable and accessible to all parents.
The report provided three models as a possible basis on which to
account for these variables. To calculate the precise costs would
require primary research that was not part of the remit of this study.
The study highlighted the following key points with regards to the
costs/benefits analysis of OSC:

OSC services are both direct and indirect economic contributors.
They offer a direct contribution in the form of the creation of a
small business, the creation of local employment and financial
gains to the local economy as a whole.

OSC are indirect contributors because of the service they provide
to enable parents to take up paid work or training.

The
costs
of
setting
up
and
providing
OSC
are
not
straightforward and are affected by a range of factors and
variables. For example, costs and pricing policy will be
determined by management models, location, type of provision,
local infrastructure and support, premises, staff ratios and
market demand.

Detailed and specific costings are difficult to calculate due to the
wide range of variables which will affect the cost of developing
and sustaining OSC provision. Also, there is currently no way of
estimating the proportion of investment in childcare that
specifically funds OSC.
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
There are three main areas of cost of OSC to the Exchequer in
terms of; (a) the cost of maintaining a person on welfare
benefits/forgone revenue, (b) cost of childcare tax credits
(previously unemployed parents who have gained access to
work), and (c) cost of Government investment in Childcare.

There is a wider and important social inclusion and social justice
policy benefit where OSC services are employing and training
unemployed individuals from economically disadvantaged areas
as well as enabling parents from disadvantaged areas to take up
employment or training.
Areas for Consideration
The study highlighted potential areas and issues for further
consideration by the Scottish Executive. These are:
Issue 1.
Possible Further Research
Given the lack of evidence in many areas, the study highlighted the
need to conduct further research for the precise benefits and costs of
OSC to be captured. It is recognised that these are often too expensive
and resource-intensive for many research budgets, however, it is
worth detailing the most useful areas for such research:

Research which is evidence based and based on rigorous
research to demonstrate both the social and economic benefits
of OSC provision. There remains a real lack of evidence.

Research specifically identifying the costs/benefits of OSC as
opposed to childcare in general.
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
Research which takes into account other factors which may bring
about benefits and which separates these out to focus solely on
the benefits as a result of OSC.

Future research would especially benefit from longitudinal
studies as many benefits of OSC can only be measured in the
longer term.

Research with samples of parents accessing OSC provision to
assess its likely impact of their work status.

Future research should also take cognisance of the differential
impact of OSC on sections of the population. For example,
differences in terms of socio-economic status, location and
ethnicity.
Issue 2.
Investment in the Local Economy
The cost/benefit analysis indicates that investment in childcare is a
valuable tool for economic development in terms of job creation in the
childcare sector as well as enabling parents, principally mothers, to
return to paid work. The actual level of investment is relatively low but
the returns are significant.
These services represent considerable
value for money and indicates the benefits of further sustained
investment in OSC. While OSC clubs are essentially small businesses
and should be run along business lines, there is an argument for
continued public investment to ensure the sustainability of services
because the benefits outweigh the return on investment.
The study indicates that it is important, if not essential, that
investment in childcare is seen as a form of economic investment
rather than being marginalised as a social issue. Without continued
investment in this sector and in initiatives like the Working Families
Tax Credit, women in particular will not be able to enter paid work or
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training and this may have a long term negative effect on economic
growth.
Issue 3.
Meeting Policy Targets
Investment in OSC enables Government to meet three sets of policy
targets. These are:

Economic Development;

Social Justice;

Social Inclusion.
The study showed that sustained investment in OSC will enable
parents
to
return
to
the
labour
market
and
that
childcare
responsibilities present one of the greatest barriers to accessing the
labour market. Return to work programmes without a childcare
element may fail to especially encourage women into the workplace.
Evidence has shown however that the provision of OSC has already
encouraged women into training and employment.
For mothers to access paid work there needs to be consideration of
their childcare needs. Traditional welfare to work programmes, such as
the New Deal, have not sufficiently incorporated these considerations
and have tended to be based on a male model, that is to say a model
of a potential employee without childcare responsibilities. Increased
recognition of the importance of OSC would be a significant
contribution to this process.
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1
INTRODUCTION
Introduction
1.1
In 1998, the Scottish Executive launched the Childcare Strategy
which has at its core the aim of enhancing the provision of good
quality, affordable and accessible childcare to help parents
balance work and home life. A core area of this strategy is the
provision of Out of School Care.
1.2
The Strategy recognises that childcare has both social and
economic benefits by enabling parents to participate in work
and training opportunities and by offering play, social and
education opportunities for children. Evidence from previous
Blake Stevenson studies into the impact of Out of School Care
shows that by enabling parents to take up learning and
employment, there is a positive economic and social impact on
the individuals, their children and families and the wider
community (Blake Stevenson, 1998).
1.3
In addition, employers are believed to benefit from a wider
potential pool of workers to recruit from, a more skilled
workforce that has been enabled to participate in training, a less
stressed workforce, and also, enhanced retention of staff.
1.4
The importance of Out of School Care is recognised by the
Scottish Executive who have commissioned this research along
with a study of OSC management models to inform their current
development of an OSC strategy.
Out of School Care
1.5
When a child starts school, their childcare needs change and can
often become more, rather than less complex. Hours of work do
not tend to fit around the hours of school, either on a day to day
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and weekly basis and also throughout the year as school
holidays usually exceed the annual leave entitlement of parents.
It has been recognised for some time that supporting Out of
School Care to enable parents of school age children to work or
train is a relatively cost effective way of encouraging parents,
usually mothers, into the labour market.
1.6
Out of School Care is designed to meet the childcare needs of
school age children through the provision of:



1.7
before school care/breakfast clubs;
after school care;
holiday care.
OSC provides a safe place for children to be cared for whilst
their parents work or train. Activities include play, recreation,
rest and other stimulating activities including trips, drama and
sport/games. It provides developmental support to children and
also, can provide access to activities and equipment that the
children would not otherwise have access to.
1.8
The Out of School Care Initiative was launched in 1993/94 with
the specific aim of developing OSC provision. It ceased in 1998
and was superseded by the National Childcare Strategy which
took a more holistic approach to the development of childcare
and early education provision. Since the OSC Initiative, which
was administered through the Scottish Enterprise Network, the
majority of OSC expansion has been funded through the New
Opportunities Fund and through Childcare Strategy funding
allocated to local authorities and the Childcare Partnerships.
1.9
The Pre-school and Daycare Census January 2002 identified that
there are approximately 1,140 OSC services in Scotland
providing around 33,600 places for 45,700 children (many use
OSC on a part time basis). These figures are likely to have
increased since the Census was conducted as a result of the
places created through the New Opportunities Fund. Whilst there
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has been significant expansion in OSC, from 500 clubs in 1988
to 1,140 in 2002, there is evidence of a significant level of
unmet demand (Blake Stevenson, 1995, 1998a,b, 2001, 2002,
2003, forthcoming). In Blake Stevenson’s experience there are
usually waiting lists for places in OSC facilities.
1.10 In addition to OSC there are other services aimed at school age
children, like Out of School Hours Learning, PE and sporting
activities. The focus of this research is on OSC and so there
must be clarity in the definition of OSC when drawing on
international examples.
The Specific Remit of this Study
1.11 The Scottish Executive Education Information, Analysis and
Communication Division commissioned Blake Stevenson Ltd to
conduct an assessment of the costs and benefits of OSC in
Scotland. The study covers:

the development of an assessment framework setting out
the full range of potential social and economic benefits
and outcomes of OSC;

a critical review of UK and international research evidence
on the benefits of OSC;

a synthesis of available evidence concerning labour
market impacts;

an assessment of the cost of provision of OSC.
1.12 In order to complete the research, the study comprises of two
main tasks; a review of the UK and international literature on the
impacts and benefits associated with the provision of OSC, and
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an assessment of the costs of OSC through the development of a
cost/benefit framework.
The Literature Review of the Benefits of OSC
1.13 Blake Stevenson carried out a literature search of academic,
organisation and Government documents from the UK and
overseas. Research studies and documents were sourced from
key Government departments and childcare organisations and
literature searches were also conducted using the internet and
library based literature databases. The review has drawn
together evidence on measureable outcomes, such as the
numbers of people enabled to work or train and extended
working hours, and where available gathered evidence of more
qualitative benefits. This evidence however is limited so
discussion has been extended to include studies where the
benefits of OSC are considered but may be less well evidenced.
1.14 The literature review of benefits of out of school care is divided
into the following sections, first for OSC in the UK and then for
OSC from the international literature:
-
Definitions of out of school care;
-
Policy background to out of school care;
-
Benefits of out of school care - UK Literature.
The Development of a Cost/Benefit Framework
1.15 While the literature review examines the social and economic
benefits associated with the provision of OSC, the second part of
this research focuses on the costs of providing OSC.
1.16 Blake Stevenson Ltd analysed the economic costs and benefits of
OSC provision by addressing the following issues:
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
The costs and benefits associated with the development
and sustainability of services. Three models were
developed to provide practical examples of costs and
benefits to the local community and the local economy.

The costs and benefits to parents. The provision of
childcare including OSC has generally been accepted as
having a positive impact on parent’s ability to go out to
work, increase their ability to do their job and to make it
less likely that they will take unplanned absences and
ability to increase monthly income.

The costs and benefits to the Exchequer. There are two
main cost areas to the Exchequer both associated with off
setting the costs of supporting previously unemployed
parents. The first cost relates to maintaining a person on
welfare benefits and the forgone revenue associated with
unemployment. The second cost is in terms of the
investment in childcare that makes it possible for parents
to enter the labour market.
1.17 Further details of the methods used to conduct the study follow
in Chapter 2 whilst Chapters 3 and 4 provide the findings of the
literature reviews on the benefits of OSC, first from the UK
literature and then from international sources. Chapter 5 of the
report sets out the analysis of the costs of providing OSC and
Chapter 6, the final chapter, provides an overview of the study
and suggested areas for further consideration.
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2
APPROACH AND METHODS
Introduction
2.1
This chapter has two main objectives:
1.
To describe the specific methods employed for this study,
namely:

The development of benefits and costs assessment
frameworks;

Literature reviews of the UK and international
literature;

Assessment
of
the
costs
associated
with
the
provision of OSC;

2.
Cost/benefits framework analysis.
To raise more general methodological issues in terms of
assessing the costs and benefits of OSC.
Methods
The development of an assessment framework
2.2
The main aim of this study was to assess the impacts and
benefits of OSC and set this against the costs of providing OSC
services. In order to achieve this, Blake Stevenson Ltd firstly
developed a framework to capture all the potential social and
economic benefits of OSC. The range of benefits in the
framework were derived from the knowledge of the consultants
and the client and was added to from the literature reviews.
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2.3
The framework of potential benefits was devised to take into
account both the economic and social benefits of OSC. It was
also important to consider the different groups which are
impacted upon by OSC. The framework therefore was set out to
include
the
different
relevant
groups,
including
parents,
children, communities, schools and employers.
2.4
The assessment framework is provided as Appendix 1 of this
report.
Undertaking a literature review of the benefits of out of school
care
2.5
The principle aim of this literature review was to assess the
impact and benefits of OSC in the UK and internationally from
existing research evidence.
2.6
Blake Stevenson Ltd carried out a critical appraisal of available
literature on both the qualitative and quantitative benefits of
OSC. The review of benefits covered UK and international
research post 1990.
The international review considered the
provision of OSC in Sweden, Denmark, Norway, Canada, the USA
and Australia.
2.7
The following websites and databases were used:

BIDS: IBSS

the website for the European Network for School Age
Children (ENSAC): www.iso-ensac.nl;

the
Work
Life
Research
www.workliferesearch.org.uk;
Blake
Centre
website
–
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2.8

the website for the European Educational Research
Association – www.eera.ac.uk;

the Norwegian Ministry of Education and Research –
www.odin.dep.no;

the
Norwegian
www.sv.ntnu.no;

the Clearinghouse on International Developments in Child,
Youth and Family Policies at Columbia University –
www.childpolicyint.org

the Swedish National Agency
www.skolverket.se/english;

the Childcare Canada website which contains research
from Belgium and the Netherlands as well as Canada www.childcarecan.org;

Scottish Out of School Care Network – www.soscn.org.uk;

Department for Employment and Skills – www.dfes.gov.uk;

Social Science Information Gateway.
Centre
for
Child
for
Research
Education
-
–
A total of 96 articles and texts were reviewed in the course of
this analysis of the UK and international literature on OSC.
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2.9
The UK and the international literature was reviewed for
evidence of the following:

Variations in definitions of OSC;

Variations in main and secondary service providers;

Variations in mechanisms and the format of provision;

Variations in terms of costs and benefits.
2.10 On the basis of the literature review, Blake Stevenson drew
together evidence of quantitative and measurable outcomes
such as the estimated number of people enabled to work or
train, extended working hours, reduced reliance on benefits and
so forth.
2.11 The consultants also gathered evidence on the qualitative
benefits associated with the provision of OSC. In particular, the
study brief wished the review to consider and explore evidence
of the following areas:

The degree to which OSC furthers children’s social skills
and builds their confidence and self esteem through
“curriculum enrichment” opportunities.

The role of OSC in promoting a learning environment that
complements knowledge and skills acquired in schools;
and which may lead to better engagement with the school
by the child.

The extent to which OSC incorporates a citizenship
element, helping children to develop the underpinning
skills necessary to participate fully in society and to divert
away from, for example, youth crime.
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
The function that OSC can play in providing good
developmental opportunities, especially for those living in
disadvantaged areas and for those who are vulnerable or
experiencing difficulties.

The role of OSC in integrating children with additional
needs and in contributing to beneficial outcomes for
children with additional needs.
Assessment of costs of OSC provision
2.12 In the assessment of the costs of OSC, Blake Stevenson Ltd
identified the key capital and revenue costs of setting up and
running OSC. This was followed by an assessment of the key
issues which would impact on the costs of OSC and which would
need to be taken into consideration during the study.
2.13 Other issues which were identified and taken into account
during the analysis were as follows:

‘Double-counting’ of benefits: for example, a positive
labour market outcome (an increase in the number of
parents in paid work) is a clear and measurable benefit.
However, a reduction in levels of offending is an avoided
cost rather than a direct benefit.

Specific timeframes: for a variety of reasons OSC are not
likely to generate significant economic gains in the first
two to three years of existence. The development of an
OSC service is associated with both capital and revenue
expenditure up front and they are unlikely to run at full
capacity at first, thus making it difficult to balance the
books.
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Hidden costs: for example, unpaid work contributed by

volunteers.
2.14 In addition, costs sources were identified and considered. These
were:

Costs Associated with the Development and Sustainability
of Services.

The cost to parents and carers.

The cost to the Exchequer.
2.15 Finally, in order to appreciate the range of variables that impact
on a cost/benefit analysis, Blake Stevenson Ltd developed three
models of OSC based on their understanding of the types of
provision available.
2.16 The three models have been developed to highlight the costs
associated with the development of OSC provision and the range
of
variables
that
have
particular
impact
on
costs
and
sustainability. These models embrace the following types of
provision:



A SIP funded project in an area of urban deprivation;
A voluntary led scheme in a rural area;
OSC provided by the private sector.
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Cost- benefits analysis
2.17 Upon completion of the review of literature of benefits of OSC
and the investigation into costs, these were brought together to
facilitate an assessment of the costs and benefits of OSC.
2.18 Appendix 2 contains a summary of the study specifications,
approach and tasks.
Key Methodological Issues in Assessing the Impact of OSC
2.19 There are three key methodological issues which arose during
this study and which should be taken into consideration in
assessing the likely impact of OSC provision:

Much of the existing research is premised on assumptions
about the likely impact of OSC rather than on evidenced
research. There are, for example, very limited amounts of
data relating to the cost of OSC provision or evidence of
the social benefits;

It is methodologically difficult to draw a distinction
between the impact of OSC and the impact of a range of
other social factors such as the socio-economic status,
gender, ethnicity, family status and environment. It is also
difficult to draw a distinction between the impact of OSC
and other forms of childcare, schooling and play activities;

The most appropriate methodology for assessing the
impact of OSC is a longitudinal study and so far there is
little evidence of these having been conducted.
OSC: making assumptions about impact
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2.20 This review of the literature reveals that methods of assessing
the benefits of OSC lack rigour. In particular there is a tendency
to assume that a range of benefits automatically stem from the
provision of OSC or other benefits and that the provision is
always and necessarily beneficial to a whole range of groups.
2.21 While it may be reasonable to assume that certain benefits are
related to the provision of OSC, it remains problematic to say
that they are the result of such provision.
2.22 For example, the Scottish Out of School Network’s Out of School
Care Information Pack states that the provision of OSC results in
social and economic benefits to the community and to children
and their families. However, little direct evidence is put forward
to support these assertions. The international literature can also
be characterised by the same kind of assumptions. Research
carried out at Harvard University reports that OSC is ‘the key to
the nurturing of children’ as children will be provided with the
opportunity to study rather than engage in unproductive and
potentially dangerous activities (Harvard University Gazette,
2002:3).
2.23 Where research based evidence does exist, it tends to be based
on perception rather than specific measures of gain and benefit.
The Scottish Out of School Care Network (SOSCN) has produced
perception-based evidence by compiling 25 case studies
(Audain and Law, 2002). This particular report was complied on
the basis of a questionnaire outlining 13 of the perceived
benefits of
Respondents
OSC (with space
were
then
for
asked
additional information).
to
comment
on
the
appropriateness of each perception. While the perception of
benefits is clearly important, it does not provide an objective
measure of the impact of OSC.
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Difficulties in isolating the specific impact of OSC
2.24 The impact of OSC can not be isolated from the positive and
negative impact of a wide variety of variables. Key variables as
identified by existing research include:
















Socio-economic background;
Environmental factors;
Gender;
Age;
Ethnicity;
Mother’s education;
Family composition;
Parental involvement;
Housing;
Number of siblings;
Resources devoted to OSC;
Type of out of school care;
Time spent in OSC;
Number of different OSC arrangements;
Quality of OSC;
Other types of childcare, schooling and play activities.
2.25 Each of these factors needs to be considered as important
mediators of the potential benefits of OSC. However, few studies
take these key variables into consideration.
Assessing the long term impacts of OSC
2.26 In order to provide accurate evidence of the impact of OSC and
in order to take into consideration the variety of external
variables, it has been argued that the most appropriate method
is that of the longitudinal study (Munton et al., 2001). This
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method allows for a detailed, evidenced and considered measure
of the likely impacts of OSC.
2.27 Munton et al. (2001) argue that researchers need to devise very
specific indicators of impact and variables that may influence
impact. These are described as follows:
Assessing academic outcomes:

Group settings such as after school clubs or day care
centres providing after school facilities;

Formal adult supervision from a childminder;

Informal adult supervision from a relative or neighbour;

Peer, sibling or self care;

Parental care.
Assessing outcomes other than academic outcomes:






Social skills;
Mental health;
Self-esteem and maturity;
Attitude to learning;
Creativity and problem solving skills;
Behaviour problems.
2.28 All of the above issues impact on this study in terms of
presenting the benefits and costs of OSC from existing research.
The assumed nature of many benefits, the role of other
influencing factors and the lack of longitudinal studies to
provide evidence must all be considered in reading this report.
They
are
also
important
factors
to
consider
in
the
commissioning of further research.
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2.29 In the report which follows we have indicated, where known, if
benefits or costs are assumed or derived, and drawn attention to
the role of other influencing factors on the outcomes of OSC.
2.30 This chapter has outlined the methodological approach adopted
for this specific study. In addition, consideration has been given
to the key methodological issues facing researchers in this field.
Summary: Methodology

The existing literature (national and international) was
assessed for the following: variations in definitions of
OSC, variations in main and secondary service providers,
variations of mechanisms and format of provision, and
variations in terms of assumed costs and benefits.

A
detailed
cost/benefit
framework
was
developed
highlighting the potential economic and social impact on
parents, children, the community, schools and employers.

This study indicates that much of the existing literature is
premised on assumptions about the likely impact of OSC
rather than on clear, evidenced research.

There is a dearth of literature relating to the specific cost
associated with the impact of OSC.

It is methodologically difficult to draw a distinction
between the impact of OSC and the impact of a range of
other social factors such as socio-economic status,
gender, ethnicity, family status and environment.

The benefits of OSC are likely to be long term. Therefore,
the most appropriate method for assessing impact is the
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longitudinal
study.
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3
OUT OF SCHOOL CARE IN THE UK
3.1
This chapter of the report presents a review of the existing UKbased literature relating to the impact of OSC. It also sets out
the policy context in which OSC should be considered.
3.2
The chapter is set out as follows:

Definitions of Out of School Care in the UK;

Policy Background to Out of School Care in the UK;

The Scottish Context;

The Economic Benefits of Out of School Care in the UK;

The Social Benefits of Out of School Care in the UK.
Definitions of Out of School Care
3.3
No one definition of out of school care exists in the UK or
overseas. It is important, therefore, to be aware of the
differences in approaches and definitions of OSC internationally.
The different definitions and the inclusion of different aspects in
international definitions will be examined in Chapter 4, whilst
definitions within the UK context are dealt with in this part of
the report.
3.4
Current literature raises an element of confusion over the
definitions and approaches of out of school care, and perhaps
reflect the reality and diversity of delivery on the ground.
3.5
When a child starts school, their childcare needs change and can
often become more, rather than less, complex. Hours of work do
not tend to fit around the hours of school, both on a day-to-day
and weekly basis and also throughout the year, as school
holidays usually exceed the annual leave entitlement of parents.
It has been recognised for some time that supporting out of
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school care to enable parents of school-age children to work or
train is a relatively cost-effective way of encouraging parents,
usually mothers, into the labour market.
3.6
3.7
Out of School Care in the UK is designed to meet the childcare
needs of school age children through the provision of:
–
before school care/breakfast clubs;
–
after school care;
–
holiday care.
OSC provides a safe place for children to be cared for whilst
their parents work or train. Activities include play, recreation,
rest and other stimulating activities including trips, drama and
sport/games. It provides developmental support to children and
can also provide access to activities and equipment that the
children would not otherwise have access to. Whilst this
overview captures the general picture of OSC, there are a
number of areas where OSC definitions vary, including provision,
settings and age.
Provision
3.8
Recently, out of school care has taken on a wider remit as
exampled in Malcolm et al (2001) who include within their
research of OSC, study support such as homework clubs and
study clubs. They do note however that, strictly, OSC excludes
study support but argue that the distinction between care and
education is becoming increasingly blurred. As a result, Malcolm
et al (2001:8) highlight the range of terminology used in the
literature and adopt a broader definition in their review; they
define out of school care as "care for children of school age
which covers periods outwith standard school hours. Within this
very broad definition it can be divided into two groups the
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grounds of its purpose, which may be to provide care, take
achievement further or both."
Settings
3.9
The settings for OSC are most commonly provided after or
before school and during school holidays. After school clubs,
holiday playschemes, breakfast clubs, kids clubs, playcentres,
playschemes, playclubs and playcamps are all included under
the umbrella of out of school care. The focus of this particular
review is after school clubs and to a lesser extent holiday
playschemes, as the Scottish Executive has commissioned a
separate review of breakfast clubs1. In all these cases, Smith
and Baker (2000a) stress that provision is registered care where
attendance is pre-booked. Out of school care is provided by
playworkers who supervise children and organise activities.
3.10 The name 'out of school care' itself may also cause confusion, as
Callender (2000) notes that OSC need not always physically
occur outside of the school and indeed the majority of OSC
provision is based in school premises.
1
During the study, it became evident that very little research broke down the
different types of OSC or looked specifically at one or another.
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Age
3.11 The confusion over the definition of OSC is evidenced even
within the same research. For example, Smith and Barker use
varying age groups to define OSC; where they used 4-14 years
in Smith and Barker 2000a, in Smith and Barker 2000b they
define OSC as "providing childcare after school and during the
school holidays to groups of children aged 5-12 in setting
explicitly offering creative play opportunities." In this example,
breakfast clubs and children aged 12-14 years are excluded
from the definition.
3.12 A document by Kids' Clubs Network and the Employment Service
(1996) also highlights the lack of consensus over age groups by
defining the age range as "usually five to 12 years, although
some children are younger and some older." Similarly, in the
Scottish context Audain and Law (2002) highlight that OSC in
Scotland is provided for a far wider age range than 5-12 years,
especially in rural areas.
3.13 This multitude of definitions and variations is not particularly
helpful and does not aid comparison either internationally or
within the UK.
3.14 From current research and literature therefore, there are a
number of conclusions which can be drawn about the definition
of out of school care in the UK. OSC is about both care and play
being provided in a safe and supervised environment for
children 4-14 years with most emphasis on children of primary
school age. The principle aim of OSC in the UK is to provide
opportunities for parents to enter the workforce, training or
education, or to extend their hours in these activities. Although
the role of education, learning and study support is growing
within OSC in the UK, they are not yet an integral part of the
definition or approach.
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3.15 The focus of this research is on OSC and so there must be clarity
in the definition of OSC, especially when drawing on
international examples. One of the clearest definitions of OSC is
provided in the research by Smith and Barker (1999a, 2000a,
2000b) who define OSC as:
"...providing for the various needs of children aged
between 4 - 14 years in safe, secure, adult supervised
environments; where the child's personal, emotional,
social,
recreational,
nutritional,
educational
and
behavioural development is addressed by playcare
workers."
(Smith and Barker, 2000a:3)
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Policy Background to Out of School Care in the UK
3.16 Over the last few years the UK Government has taken a series of
initiatives aimed at facilitating parental employment (Office for
National Statistics, 1998). A major part of this was the launch in
1998 of the National Childcare Strategy which aims to provide
childcare places for children aged 0-14 years (or up to 16 years
for children with additional needs) in every neighbourhood. In
England and Wales, local Early Years and Childcare Development
Partnerships, and in Scotland, local Childcare Partnerships, were
given responsibility for planning and delivering strategy.
3.17 The Childcare Tax Credit, part of the Working Families Tax
Credit2, was launched in October 1999 to offer substantial
support with childcare costs (up to 70%3) for parents on low
income (Inland Revenue Analysis and Research, 2002; Kids'
Clubs Network, 2002a).
Initiatives were also targeted
specifically at lone parents such as the New Deal for Lone
Parents, providing Personal Advisors to offer lone parents help
with job searches, training and childcare.
3.18 The development of out of school care in the UK has also been
part of a £220 million funding initiative delivered by the New
Opportunities Fund (NOF) to help with start-up costs of OSC.
This was launched in January 1999 and applications will close in
2003. The aim of the programme is to address the lack of out of
school hours childcare and to fund new childcare places. This
fits directly into the National Childcare Strategy with the ultimate
aim "to promote the wellbeing and development of children and
to offer parents, especially women, the chance to take up work,
education and training." (New Opportunities Fund, 2001:2).
2
From April 2003, the Working Families Tax Credit will cease to exist and will be
replaced by the Working Tax Credit and Child Tax Credit.
3
Up to a maximum of £135 for one child and £200 for two or more children (Inland
Revenue, 2002)
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3.19 The impacts of these policies is evidenced in statistics which
show out of school care growing rapidly over the last ten years.
In 1993, a few hundred clubs existed whilst an estimated 7000
OSC clubs now exist across the UK, many having started with the
support of NOF and the National Childcare Strategy (Kids' Clubs
Network, 2002). As a result, the number of out of school
childcare places in the UK has doubled since 1997, although this
still only represents less than 6% of school age children and a
Department for Education and Skills (2002) study shows that
86% of parents would like out of school care for their children. In
England, it is hoped to increase the current 5,000 clubs to 9,000
by 2004 (Kids' Clubs Network, 2002).
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The Scottish Context
3.20 The Out of School Care Initiative was launched in 1993/94 with
the specific aim of developing OSC provision. It ceased in 1998
and was superseded by the National Childcare Strategy, which
took a more holistic approach to the development of childcare
and early education provision. Since the OSC Initiative, which
was administered through the Scottish Enterprise Network, the
majority of OSC expansion has been funded through the New
Opportunities Fund and through Childcare Strategy funding,
allocated to local authorities and the Childcare Partnerships in
Scotland4. In each local authority area, there is a Childcare
Partnership which brings together a range of stakeholders and
interested parties. Local Authorities work closely with these
Partnerships to ensure that the development of childcare and
early education meets local needs and circumstances.
3.21 A total of £25 million has been invested in Scottish Out of
School Care by the New Opportunities Fund (NOF). The Scottish
Executive has provided resources for local authorities to work
with the voluntary and private sectors in partnership, to provide
and sustain early years education and childcare provision.
3.22 There have been significant advances in the provision of
childcare in Scotland since the launch of the Childcare Strategy.
The priority for the Scottish Executive is to build on these
successes by continuing to grow the provision of integrated
early education and childcare services, as well as the services
that are specifically targeted at vulnerable families and children.
There are now approximately 1,140 OSC services in Scotland
providing around 33,600 places for 45,700 children (many use
OSC on a part-time basis). These figures are likely to have
increased since the Census was conducted, as a result of the
places created through the New Opportunities Fund. Whilst there
has been significant expansion in OSC, from 500 clubs in 1988
4
For a more comprehensive history of OSC in Scotland, see Audain and Law (2002).
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to 1,140 in 2002, there is evidence of a significant level of
unmet demand. In Blake Stevenson’s experience there are
usually waiting lists for places in OSC facilities.
3.23 During the period 2001-2004, the Scottish Executive is
investing £475m in pre-school education and childcare, and
within this the total available for childcare is £58.45m over the
three years, weighted for disadvantage. The funding is
distributed to local authorities who then have responsibility for
the disbursement of funds in their area.
3.24 The Executive will also provide an additional £6.6 million in
2003-2004, £29 million in 2004-2005 and £54.9 million in
2005-2006 through Sure Start Scotland and the Childcare
Strategy5. Additional funding for childcare for students in higher
and further education is also being made available 6. This
indicates a significant commitment to childcare in Scotland.
Rationale for Childcare
3.25 Demographically, the need for childcare is captured by the
figures that 78% of women in the UK with children aged 6-13
years work outside the home, 40% of women work over 40 hours
per week, 30% of men work over 50 hours per week and 61% of
working families have parents who work shifts or work during
early mornings, evenings, nights or weekends (Daycare Trust,
2002).
3.26 In Scotland, the Scottish Household Survey (Scottish Executive,
2000) showed that 45% of women are in some type of paid
employment compared to 57% of men. Women who work were
also more likely to be working part-time (18% compared to 2%
of men). Full-time employment amongst women falls from 42%
5
http:/www.scotland.gov.uk/library5/government/babs-00.asp
6
http:/www.scotland.gov.uk/consultations/lifelonglearning/stln-08.asp
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to 36% between the ages of 25-34 years and 35-44 years, while
part-time working rises from 23% to 31%. Of the non-working
population, 15% of women look after their home and family, with
the figure peaking at 23% for women aged 25-34 years. A
quarter (24%) of women with dependent children are in full-time
employment compared with 43% of women with no dependants,
and women with children are more likely to be in part-time
employment (33%) compared to those without (18%) (Scottish
Executive, 2000).
3.27 Economic statistics show a growth in female employment,
however evidence suggests that childcare remains a significant
barrier for a large number of women with children, who want to
access education, training and employment, and is also a reason
for the high numbers of mothers working part-time (Department
for Education and Skills, 2002).
3.28 Smith and Barker (2000b: 317) argue that the policy context
within which the provision of out of school care is located is
economic, with the explicit aim "to enable parents and, in
particular, mothers to (re)enter employment by improving both
the quality and quantity of out of school childcare available in
the local area."
3.29 However, alongside these concerns over the ability of women
and mothers to participate in the labour market, the Department
for Education and Skills (2002:7) highlight the need to ensure
that all children have access to good quality education and care
which offers "stimulation, social experiences and learning
opportunities."
3.30 It is within this context that this review of the benefits of out of
school care sits. In the next section, the review considers the
range of benefits which have been evidenced by existing
research in the UK, that is both economic as well as the wider
social benefits for parents, children, employers, schools and the
community.
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The Benefits of Out of School Care
3.31 The majority of research conducted on out of school care in the
UK has been by a small group of academics and national
childcare organisations. During this review exercise, it became
clear that few studies exist on the specific benefits and impacts
of out of school care and even less which provide rigorous
evidence, or that is not anecdotal, especially for non-economic
benefits. Much of the literature reviewed makes assumptions,
statements and projections about the benefits of OSC without
offering either quantitative or qualitative evidence. A discussion
of the major methodological weaknesses is offered in an earlier
section of the report.
3.32 Many of the arguments for benefits, therefore, remain
inconclusive, especially for more social or long-term benefits.
This may be a reason why the review of literature on OSC by
Malcolm et al (2001) focuses much of its discussion on study
support over OSC provision, as there is growing evidence for
study support from studies produced by the Department for
Education and Employment. This further highlights the need for
more robust and longitudinal research in the area of out of
school care.
3.33 The review of literature on benefits is divided into two main
sections; one looking at the economic benefits, and the other
investigating the evidence for social benefits. Within these
sections, the different benefits for parents, children, employers,
schools and communities are considered. Any consideration of
the potential benefits of OSC must be done with the
acknowledgement that there are practical and structural
constraints on the achievements of these benefits.
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The Economic Benefits of Out of School Care
3.34 The most numerous and evidenced studies on the benefits of
childcare in general, and out of school care in particular, are on
the economic benefits. The most commonly evidenced economic
benefit is the ability to increase access to employment, training
and education.
Parents and carers
3.35 There is strong evidence from the UK, including Scotland, for the
economic relationship between childcare and the ability of
parents, especially mothers, to enter the workforce or to study
(Children in Scotland 1998c; Dench and O'Regan, 1997; Hinds
and Park, 2000; trueGrit, 1998). Research evidence shows that
the majority of users of OSC are parents who work or study
(Blake Stevenson Ltd, 1998; Children in Scotland 1998, La Valle
et al 2000) and are frequently lone parents (Hinds and Park,
2000). Some of these studies and their findings are discussed
below.
3.36 Dench and O'Regan (1997), in their study of OSC clubs in Kent,
claim that the labour market impact of OSC is strong, and their
research shows a number of positive and significant economic
benefits from the availability of out of school care. These
include a reduction in the percentage of respondents not
working, which dropped from 24% to 10%, a reduction in the
percentage of respondents working part-time, dropping from
37% to 32%, and an increase in respondents in full-time
employment, which increased from 32% to 46%. Additionally,
almost a third of respondents in the study were able to work
longer hours, were able to enter the workforce for the first time,
went into training, found better jobs or had been promoted.
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3.37 A New Opportunities Fund (2001) evaluation of the impacts of
their out of school programme points to clear and positive
effects of OSC on the lives of parents and carers. This case
study research shows that 43% of parents or carers surveyed had
been able to take up employment opportunities and 19% were
able to increase working hours. A total of 82% of those surveyed
indicated that they would have to reduce work or study time
without OSC.
3.38 In Scotland, Blake Stevenson’s (1998) evaluation of the Forth
Valley Out of School Care Initiative showed similar impacts. Of
the 603 families regularly using OSC, 96% were in employment,
education or training. The study found that OSC enabled 67% of
parents using the service to continue in employment, 23% to
take up employment, and 10% to take up training or education.
Some parents also reported being able to improve their position
in the workforce, moving from part-time to full-time work,
taking up a better paid job or achieving promotion.
3.39 In Glasgow, Community Enterprise in Scotland (1996) also
recorded the labour market impacts of an OSC initiative. In this
study, the percentage of parents in employment increased from
77% to 92% after accessing an OSC placement. For lone parents,
the equivalent increase was from 66% to 88%. A total of 9% of
parents in the study stated that they would have had to reduce
their working hours. In more disadvantaged areas, the study
reports that parents are more likely to access new jobs (rather
than retain current employment) and so reduce dependency on
benefits. Further impacts were recorded within the workplace
and included 74% of parents feeling their ability to do their job
had increased, 61% had found their job more satisfying, 52%
were more committed to the job and 10% reported less
unplanned absences.
Of those interviewed, 14% were in
education or training and 71% of these stated that without OSC
their ability to continue would be adversely affected.
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3.40 Similar results were reported by Hinds and Park (2000) and
trueGrit (1998) in Scotland who showed evidence of linkages
between the availability of childcare and the ability to go out to
work, benefit from earning money, increase their ability to do
their job and decrease unplanned absences. Like Community
Enterprise in Scotland (1996), the trueGrit (1998) study also
highlights the specific benefits to low income households. The
proportion of study respondents who felt they had accessed
economic opportunities increased to three-quarters from 68%,
in the group of participants from the regeneration area of the
study. Although these two studies do not focus on out of school
care they do provide evidence of the economic importance of
childcare in general.
3.41 A recent study by Audain and Law (2002) for the Scottish Out of
School Care Network surveyed 25 OSC providers from across
Scotland, to qualitatively assess the range of benefits of out of
school care. The study identified 13 perceived benefits, which it
asked the providers to evidence through parents' surveys, case
studies, interviews with head teachers and other documents. Of
these perceived benefits, one was economic and stated a benefit
as "helping parents (especially lone parents) into work and
extending their hours of work" (Audain and Law, 2002:6).
Overall, this was the benefit with the joint-second highest
proportion7 of providers offering evidence (72%). One case study
in the report states:
"A recent impact assessment survey has shown that we
have provided a care environment which is good quality
and is flexible. This has enabled many of our parents to
access and/or continue working without the worry of how
to access continuous, reliable care. Prior to our existence
many parents used relatives, neighbours or childminders
7
The most evidenced benefit was contributing towards the integrated service agenda
which probably reflects the type of respondents surveyed.
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to allow them to work and for many it appears that
arrangements were not satisfactory."
3.42 Although this study provides qualitative evidence from a very
small sample and could not be considered rigorous research, it
offers useful information on perceived benefits and a good
starting point for the investigation into the benefits of OSC,
especially the wider, and more social and qualitative, benefits
that will be discussed later.
Constraints on benefits to Parents and Carers
3.43 There are several factors that limit the achievement of benefits
to parents and carers. The availability of OSC alone will not
necessarily guarantee that benefits accrue.
3.44 Influential factors will include; the availability of work for which
parents and carers have the appropriate skills; the availability of
work during suitable hours; whether or not childcare provision is
available during the hours parents are working and financial
incentives such as working tax credits. Parents and carers will
also take into consideration the cost, and quality and reliability
of the care available.
3.45 While these issues are raised as possible constraints on the
impact of OSC, it is not possible from evidence in the existing
literature, to establish the relative impact of any of these factors.
For this reason, there is a need for new research that clearly
identifies constraints and can add to our understanding of the
relative impact of each.
Children
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3.46 None of the studies considered in the literature review offered
evidence of economic benefits to children. The majority of
studies assume economic benefits will be derived by children
from the increased earnings to their parents. This is a major gap
in the literature since it does not take into account intrahousehold inequalities and assumes that an increase in
household income will benefit all members of the household.
Communities
3.47 A qualitative study commissioned by Kids' Clubs Network (BMRB
and Kids' Clubs Network, 2001) investigated the impact of out of
school clubs on local communities in East London, Liverpool and
Newcastle. A main finding of this pilot study was the role that
childcare for school-aged children can play in both the short
and long term in tackling poverty and regeneration, and
especially the result of a number of parents being able to move
off benefits. The research found that OSC:
"brought multiple benefits felt by whole communities and
those multiple benefits were consistent. Some benefits
were immediate and visible - such as parents being able
to return to work" (BMRB and Kids' Clubs Network,
2001:1).
3.48 The benefit of parents accessing work then was seen to impact
not only on them as individuals but on their children, other
family members and the wider community. For children, the
research found that OSC had a key role to play in breaking the
cycle of deprivation in some areas, by enabling access to
employment and by "reaching out to children when they are
young
to
provide
a
positive
environment
and
experience"(ibid.:3), although it is difficult to see how the
research evidences this benefit.
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3.49 Whilst these findings are important, especially in the long term,
no substantial evidence was presented to support these
findings. Again, assumptions have been made about the derived
benefits of OSC without reference to other potential sources of
impact such as employment programmes, changes to benefits or
other local variables.
3.50 The importance of childcare to more disadvantaged
communities is stressed by the Scottish Poverty Information Unit
(1998) who highlight it as an anti-poverty strategy. In their
discussion paper on childcare, they point to the growing
evidence that women's contributions through earnings are
important in reducing a family's vulnerability to poverty. They
cite that in the prior ten years, the number of working mothers
with children under five has increased from 27% to 45%. The
paper concludes that the impact of their earnings has been to
keep a substantial number of households out of poverty, and
cites the example that in 1990, people in families where the
husband worked but the wife did not had a four to six times
higher risk of being in the bottom quintile than those families
where both partners worked. This research, however, is not
specific to OSC.
3.51 Poverty then is a key theme in the literature at the community
level and indeed Munton et al (2001: 71) state that "poverty is
the single most significant risk factor for child development.”
3.52 Potential benefits to the community, however, cannot be
assumed. As highlighted at the beginning of this section, the
majority of childcare is used by parents already in work and in
particular by parents on higher incomes. In addition, a survey
carried out by the New Opportunities Fund indicated that only a
small proportion of children using their services were from
deprived backgrounds. For these reasons, it cannot be assumed
that the provision of OSC will lead to a reduction in poverty or
will enhance social inclusion, although it is believed that there is
a strong positive relationship between the two.
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Employers
3.53 A number of studies have also identified the economic benefits
of childcare for local employers. A briefing paper by Children
Mean Business (2000) on childcare in general argues that the
benefits for employers include the following:
3.54
–
reduction in recruitment costs because staff turnover rates
decrease in response to a wider set of options for their
children;
–
mothers are more likely to return from maternity leave so
better retention rates;
–
investment in training and staff development programs is
recouped as retention rates improve;
–
a reduction in childcare breakdown results in reduced
staff absenteeism rates;
–
a wider pool of potential recruits for jobs.
3.55 The paper claims that "childcare is the single most important
issue to workers." Unfortunately, the paper does not provide
actual evidence to support this claim.
3.56 Dex and Smith (2002) found that family-friendly policies in
general, including help with childcare are associated with
improvements in employee commitment to private sector
establishments. They identified particular improvements in the
quality of performance and a reduction in labour turnover
figures.
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3.57 A Kids' Clubs Network (2001) study identified the employment
and volunteering opportunities presented by out of school care
providers as employers. In 2002, an estimated 14,000 paid staff
work in out of school provision in England and Wales supported
by 2,000 unpaid volunteers (Daycare Trust, 2002). Similarly,
Blake
Stevenson
(1998)
highlighted
the
employment
opportunities created in Forth Valley in their evaluation. Other
studies however have highlighted the problems with
employment in childcare sectors, including low wages and
status, and associated problems of staff recruitment and
retention (Blake Stevenson Ltd, 2000).
Summary of Economic Benefits
3.58 These findings evidence the successful achievement of the
principle aim of the Childcare Strategy and out of school care
development; that is to facilitate the access of parents to
employment, education and training. The case of lone parents
was particularly highlighted by a number of research studies.
There is also evidence of economic benefits to communities,
especially those which are more disadvantaged, and employers.
However, there is less substantial evidence to support these
claims. Although it may be assumed that children derive
economic benefits from increased income within a household or
community, there is currently no research which evidences this
type of benefit.
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3.59 The economic benefits identified in the literature can be
summarised as follows:
Summary of Economic Benefits
Parents and carers
–
Access to employment, education and training;
–
Increased or stable earnings;
–
Decreased dependency on benefits;
–
Increase in working hours;
–
Movement from part-time to full-time working;
–
Increased ability to do job and increased satisfaction;
–
Less unplanned absences;
–
Promotion or better job.
Children
–
Assumed economic benefits from parents access to
earnings.
Communities
–
Contribute
to
tackling
poverty,
disadvantage
and
regeneration;
–
Creation of positive environment for children;
–
Employment creation and opportunities in OSC.
Employers
–
Reduction in recruitment costs;
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–
Better retention rates e.g. mothers more likely to return
from maternity leave;
–
Investment in training and staff development programs
recouped;
–
Reduction in unplanned absences;
–
Wider pool of potential recruits for jobs;
–
Employment creation in OSC.
The Social Benefits of Out of School Care
3.60 An increasing number of research studies have emerged in the
last few years which pay attention to the non-economic and
more social benefits of out of school care. These benefits are
wide-ranging and often long term and so many are more
difficult to collate and quantify, and are often based on case
studies.
3.61 As highlighted in the methods section of this report, there is
little concrete evidence of the social benefits of OSC. Once
again, the benefits in this section are looked at separately for
parents, children, communities, employers, and also schools, in
this case. The most significant benefits are seen to impact upon
children.
3.62 Social benefits may also have long term economic impacts. For
example, improved educational attainment will, arguably, have
long term economic benefits in terms of increased
employability, but as yet, there is no evidence to support this.
Children
3.63 A study in Kent by Dench and O'Regan (1997) offers clear
evidence for the benefits of out of school care other than those
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directly related to the Iabour market. The research looked at the
views and experiences of parents and club managers, and
reported that 96% of parents felt that their children were happy
attending an out of school club and three-quarters thought that
their children benefited positively by attending. This outcome of
fun and happiness for children was stressed by a number of the
studies (Blake Stevenson, 1998b).
3.64 Dench and O'Regan (1997:2) also highlight the range of
opportunities at OSC facilities which are not available at home or
school, and in particular the benefits "in relation to general
social interaction and development." This benefit was seen to be
particularly important for 'only' children and those living in more
isolated parts of the country (Dench and O'Regan, 1997; Smith
and Barker, 2001).
3.65 The importance of education and achievement, however, were
not considered as important as the opportunities for play. Only
approximately a third of the case studies in the Audain and Law
(2002) study felt they could evidence the benefit of helping
children achieve in school, one of the least evidenced benefits,
and this was generally linked to providing a stable environment
or to the provision of homework clubs.
3.66 A further, highly significant benefit of some OSC is on health.
OSC, and breakfast clubs in particular, were seen to help to
develop healthy eating habits in children through the provision
of healthy and varied food (New Policy Institute and Kids Club
Network, 1999). The report revealed that 6% of children aged 816 years in the UK miss breakfast. Approximately 20% of out of
school clubs in England and Wales provide breakfast clubs. Out
of school care also offers opportunities for children and young
people to take part in physical activity, sports and games; the
argument being that health habits set now will often last a
lifetime. This is confirmed by a range of medical evidence on the
links between diet, exercise habits and health.
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3.67 The health benefits of out of school care have also been
recorded by Kids' Clubs Network (2001a). They cite statistics
from the British Medical Journal which state that 22% of all boys
and girls between the ages of seven to 11 years are overweight,
and that 11 % of girls and 12% of boys can be described as
obese in the UK. These weight problems have been seen to
contribute to diseases such as diabetes and asthma. Out of
school clubs are seen to play a vital role in offering children
active and physical opportunities through play, games and sport.
In this study, the informal and flexible nature of OSC is also
considered to create a positive environment to motivate children
to participate in physical activity.
3.68 Much of the evidence for the health benefits of OSC is subjective
or anecdotal, and is based on medical research findings on links
between play/activity and health for young people. One study by
Blake Stevenson (2002) on OSC provided longitudinal evidence
of health improvements with children with additional needs.
Simple exercise tests were conducted and recorded over time to
provide substantial evidence of health improvements.
3.69 Finally, a benefit of OSC for children, as found in the Smith and
Barker (1999) study, is the opportunity for consultation with
children, and examples were provided of children being involved
and having ownership of the club. This partnership working was
considered important for developing a service appropriate to the
needs of children and young people.
3.70 Munton et al (2001), in their feasibility study for a longitudinal
study of long- term social impacts of OSC on children, highlight
the wide range of benefits, and in particular social benefits,
which could begin to be captured by research studies whilst
taking account of these external factors. Whilst there is a
growing range of literature and research on the benefits of OSC
in the UK, there is still enormous scope for further and more
detailed investigation.
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3.71 Research by BMRB and Kids' Clubs Network (2001) looks at the
short and long term impacts of out of school care in its direct
community and identified two key benefits for children:
–
opportunities for children to play, and;
–
reaching children at a young age.
3.72 The research argues for the benefits of play as a key
developmental process, where children "learn to negotiate, take
risks and make compromises." In some areas, the research
notes, out of school clubs are the only places children have to
play, and the research quotes the Childcare Commission (2001)
on the importance of play: "Children make sense of their world
through play. It is essential for their intellectual, emotional and
physical growth. To children play is work, developing life long
skills."
3.73 Out of school care was also seen to reach children at a young
age therefore providing primary school children with a positive
view on life. Where support and opportunities were offered to
families, this was seen to impact and bring benefits for children
although there was no evidence provided of this link.
3.74 An important research programme in England and Wales on the
benefits of out of school care was that undertaken by Smith and
Barker of the Out of School Care Research Unit at Brunel
University. They have published a range of papers and research
findings and are the main academic contributors in this area (see
Smith and Barker, 1999a, 1999b, 1999c, 2000a, 2000b, 2001).
The focus of their research is the different geographies of out of
school care, and they have conducted particular research into
the views of children from rural geographies and childhoods
(1999c, 2001).
3.75 The findings from Smith and Barker support these findings, as
the most significant impact of OSC identified by the respondents
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was children's enjoyment of the service and especially play
activities. The authors write of the lack of opportunities for play
for children, and comment that: "Out of school care provided a
significant and unique opportunity for children to meet, play and
enjoy themselves" (Smith and Barker, 1999a:7). The study also
evidenced the perception that out of school care was seen to be
a safe and secure place for children. Respondents talked about
the lack of safe places for children and that the provision of OSC
had in turn helped to reduce the number of 'latchkey' kids. This
has an additional benefit of offering parents 'peace of mind' as
evidenced by Community Enterprise in Scotland (1996) and
Smith and Barker (1999a).
3.76 Respondents highlighted the different ways OSC broadens
experiences and promotes the development of new skills,
especially social skills. The opportunities to meet children from
diverse backgrounds was highlighted as a way of increasing
social skills and personal confidence.
3.77 The role of OSC in impacting on the confidence and self-esteem
of a child was stressed in the study by Audain and Law (2002)
for the Scottish Out of School Care Network, using 25 case
studies. Of the 13 perceived benefits of out of school care, 12
of these evidenced by clubs were non-economic, and five
focused on children and young people. The most-evidenced
benefit for children in their study was building children's
confidence and self-esteem, and providing motivation through
these increased opportunities for play, sport and crafts. Almost
three-quarters (72%) of the case studies could evidence this
benefit, the second most-evidenced benefit alongside the labour
market benefits to parents.
3.78 Other studies have highlighted the social interaction role and
benefits of OSC.
Smith and Barker (1999b) find that
respondents valued the benefits of children of different ages and
ethnic backgrounds mixing. These opportunities for social
interaction were considered to be particularly important for
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'only' children and those from rural areas. Children from rural
areas were seen to face particular challenges in areas which
were deprived or where facilities were limited (Smith and Barker,
2001).
3.79 In addition, the benefit of social interaction was considered
important for children with additional needs. Audain and Law
(2002) show that half (52%) of their case studies perceived and
evidenced a benefit of OSC as: "integrating children with special
needs and helping these children to benefit." This occurred
where children were integrated with mainstream children at a
club and such integration was considered positive by the clubs
for all children.
3.80 The same study evidenced the benefit of providing activities
suitable for older children, and helping them to develop into
responsible teenagers and adults. This benefit was evidenced by
clubs who provide specific activities for older children (48%), for
example a specialist programme, a different space/room, using
a different name and integrating older children as helpers.
3.81 As well as increasing life skills, social interaction and personal
confidence, Smith and Barker (2000a) identified the benefit of
support for a child's education through new opportunities. A
quarter of parents in the study stated the opportunity to learn as
one of the reasons their children attended OSC. The role of OSC
in promoting and complementing the educational focus of the
school day was seen to be especially important in areas of
deprivation, by helping to counter under-achievement and
support attempts to raise expectations.
Parents and carers
3.82 In addition to helping parents (especially mothers and lone
parents) into work and extending their working hours, the
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Audain and Law study collated evidence from 40% of the case
studies that showed that OSC helps by: "providing support to
parents through parenting classes or welfare benefits advice or
other lifelong learning community support activities" (Audain
and Law, 2002:37).
Clubs were seen to achieve this by
advertising information and providing advice, especially on
benefits, using an outreach worker, supporting community
organisations, and direct provision of classes for parents.
3.83 Similarly, the study by BMRB and Kids' Clubs Network (2001)
identified the two main benefits for parents as the ability to
enter the workforce, and the role OSC could play in informal
support and advice. This would often happen at the beginning
or end of a day, when children were being dropped off or
collected, and parents in the research valued this informal
source of support. However, much of the research evidence is
anecdotal.
3.84 Smith and Barker (1999b:16) identify the support to vulnerable
families as a particular benefit of OSC. The ability of parents to
have a break from children and the provision of respite was seen
to contribute to "the physical and mental health of families".
Smith and Barker (1999b: 17) go on to highlight the experiences
of 'peace of mind' by parents, which allowed them to take on
other responsibilities and commitments during out of school
hours. This was also evidenced in the Community Enterprise in
Scotland (1996) study in Glasgow.
3.85 Finally, La Valle et al (2000) and Blake Stevenson Ltd (1998)
highlight the importance of the social aspect of work and the
opportunities for social interaction for parents. This was
reported by a number of parents in the study.
Community
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3.86 The Audain and Law (2002) study identified two potential
benefits to the community. These are:
–
Incorporation of citizenship element, helping children to
develop the underpinning skills necessary to participate
fully in society; and,
–
Helping to divert young people away from anti-social or
criminal behaviour.
3.87 Nearly half (48%) of respondents in the study offered evidence of
these benefits, which often over-lapped, for example, arranging
talks from the police, fire service or water board.
Other
activities include those developing community and citizenship
skills, and knowledge of children's rights. These are important
wider benefits impacting not only on children and their families
but also on schools and members of the wider community.
3.88 A study by BMRB and Kids' Club Network (2001:2) also
highlights the role of OSC in crime prevention and reduction.
The research found that: "the lack of positive alternatives in
some areas meant children were in danger of "getting into
mischief'...peer pressure to take part in negative behaviour,
including drugs, was strong". OSC clubs were seen to provide a
different, positive view on life for children. Similarly, Smith and
Barker (1999:22) also discuss the role of OSC in reducing childrelated vandalism. Once again, much of this is assumed and
anecdotal, and not based on particular evidence.
3.89 The BMRB and Kids' Clubs Network usefully focuses on the
community impacts, and investigated the hypothesis that "out of
school childcare can have a profound and beneficial 'ripple'
effect felt in classrooms, personal relationships and the wider
community". The research identified these other longer-term
benefits for the community, although it provides no actual
evidence to support them:
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–
Out of school clubs provide support for parents and
children which can change individual lives and bring
benefits
to
the
community.
These
benefits
were
sometimes slow to appear but had a long-term effect.
–
Clubs had a key role to play in breaking the cycle of
deprivation, reaching out to children when they are young
to
provide
a
positive
environment
and
experience.
Playworkers provide alternative role models.
–
Out of school clubs do not just reduce the likelihood of
negative behaviour in later life but can change social
attitudes for the better by "raising the aspirations of the
children, (you)
community".
are
changing
the
culture
of
the
3.90 Finally, out of school providers indicated the different ways their
service promoted social inclusion in a community in the Smith
and Barker (1999b: 21) study. The role which OSC plays to
facilitate parents into work, was seen to help link families to the
community. These linkages were also seen to be developed by
the inclusion of parents in the management of clubs. This was
the only study where the role of parent-led management
committees were mentioned. OSC was also considered to foster
positive relationships between the school and the community,
and increase the popularity of the school.
3.91 All of these benefits are more difficult to prove and provide
evidence for, especially in the short term. This again points to
the need for longitudinal studies.
School and Service Delivery
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3.92 Reference to the Smith and Barker (1999b) study in the previous
section highlights a benefit to schools from OSC which can
foster positive relationships and increase the school's popularity.
This impact on school rolls or popularity was also considered by
Audain and Law (2002), but was not significantly evidenced and
no statistics from school rolls were offered.
The more
significant benefits for school and service providers were seen to
include: "Furthering the integrated service agenda e.g. effective
links with education, social work and other local authority
departments, schools and other agencies helping vulnerable
children and families or children experiencing difficulties"
(Audain and Law, 2002:17).
3.93 This was considered to be the leading benefit of out of school
care by the small sample in the study. Audain and Law (2002:7)
comment that this is particularly encouraging given the
recommendations set out in 'For Scotland's Children' (Scottish
Executive, 2002) for closer co-operation between agencies
working for children and their families. It is also interesting that
this strategic role is considered one of the most important
benefits alongside parents' access to the labour market and
building children's confidence and opportunities. The focus of
this benefit is on vulnerable children and families in crisis, which
the range of OSC providers in this study obviously considered
core and important. Clubs evidenced their relationships and
partnership working with a range of agencies and organisations,
and displayed a significant amount of effort and activity in this
area.
3.94 Audain and Law (2002) also evidence a benefit to schools as
"providing a learning environment which complements
knowledge and skills offered in schools". The creation of such a
learning environment was considered a benefit by just over half
of the participants (56%). Some projects offered a programme of
activities based on the curriculum, homework sessions, and use
of educational tools, equipment and games.
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3.95 Smith and Barker (1999b) also draw conclusions about the
impact of the benefits of out of school care on schools, due to
the development of a learning environment for children. This is
seen to contribute to a more positive school environment and
some respondents in their research suggested it improved
school attendance rates. For those clubs based within schools,
there were practical advantages expressed, such as the better
use of school premises. However, some respondents felt the
relationship between schools and OSC was problematic as it was
seen as a place with school rules and school-driven agendas,
rather than being play-centred. In some areas, the research
found an overt tension between play and education.
Employers
3.96 In a paper by Children Mean Business (2000), the potential social
benefits to employers of childcare for employees are
highlighted. These include the increased ability of employees to
balance work and home life and so raise their potential within
their jobs, and increased staff morale and reduced stress levels.
3.97 In their Kent study, Dench and Regan (1997) found evidence
from parents of less tangible effects of labour market impacts
on family life. Two-thirds of parents reported a positive benefit
on the quality of family life through "giving them peace of mind,
reducing stress and increasing the amount of time they have for
coping with life generally" (Dench and Regan, 1997:2).
Summary of Social Benefits
Children
–
–
Opportunities for play and fun;
Safe and secure environment;
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Social interaction with children of different ages, ethnic
backgrounds and with additional needs:
particularly
important for 'only' children and those from rural areas;
–
Increased confidence, self-esteem and motivation;
–
Broadens experiences and skills;
–
Curriculum enrichment and learning environment;
–
Health benefits through healthy eating and physical
activity;
–
Consultation opportunities with children.
–
Parents and carers
–
–
–
–
Support and advice;
Respite and 'time off';
Aids physical and mental health of families through
stress reduction;
Social interaction through work.
Communities
–
Development of citizenship;
–
Alternative to anti-social behaviour;
–
Social inclusion of families;
–
Linkages of families and schools to community.
Schools and service providers
–
Increased popularity of school and better relations with
community;
–
Increased integration of services;
–
Compliments school learning environment.
Employers
–
Less stressed employees.
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Conclusion
3.98 This chapter of the review has highlighted the significant
benefits of OSC, both economic and social, for parents, children,
the community, schools and employers in the UK. Research into
the economic benefits show that benefits to parents is
particularly evidenced by current research, but that increasingly,
social benefits are being explored, especially for children. This
has introduced a more balanced consideration of the benefits,
which are obviously wider than simply allowing parents, and
especially mothers, to access employment, training and
education.
3.99 In consideration of benefits, there is a lack of research which
takes into consideration the impact of different factors such as
age, gender and ethnicity of the child, or the quality of setting of
OSC, although Smith and Baker (2000b) highlight the importance
of age, gender, access and rurality in particular on the OSC
experiences of children. There remains a lack of research on the
experiences of different groups and variations between children,
including those with additional needs.
3.100 There is also a lack of consideration of other factors that will
impact on parents and children, and on wider arenas such as
other local employment initiatives, other forms of childcare, and
different environments.
3.101 Further, whilst benefits which stem from OSC are acknowledged,
consideration also needs to be given to negative impacts such as
the increased potential for bullying and low pay in the childcare
sector.
3.102 Overall, the review has highlighted the range of both economic
and social benefits of OSC for different groups including
parents, children, the community, schools and employers.
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Equally, it has highlighted the immediate need for more research
providing evidence of benefits, especially over time.
Summary: Out of School Care in the UK
Current literature raises an element of confusion over the
definitions and approaches of out of school care and perhaps
reflect the reality and diversity of delivery on the ground.
There is a consensus in the literature that the principal
economic benefits of out of school care are in terms of:
a)
Parents: access to employment, education and training
and associated benefits
b)
Children: increase in household income
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Summary: Out of School Care in the UK (continued)
c)
Communities:
through
the
tackling
creation
poverty
of
and
employment
disadvantage
and
other
opportunities;
d)
Employers: stability of labour force.
The existing literature identifies the following as the principle
social benefits of out of school care:
a)
Parents: parenting skills and respite care;
b)
Children:
opportunities
for
learning
and
social
development;
c)
Communities: greater social inclusion and development
of citizenship;
d)
Employers: parent workers given peace of mind about
childcare;
e)
Schools and service providers: integration into the
community and development of learning environment.
Despite these benefits, there remains a lack of significant
evidence in the research, especially of social benefits.
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4
OUT OF SCHOOL CARE - AN INTERNATIONAL REVIEW
Introduction
4.1
This section of the review provides a critical appraisal of
international research evidence in relation to the benefits of out
of school care (OSC). The discussion is divided into four
sections:
4.2

International definitions of OSC;

The content and policy context of OSC provision;

Provision of OSC – extent and mechanisms of delivery;

The benefits of OSC – international evidence.
The original research brief requested Blake Stevenson to
consider the following countries: Sweden, Denmark, Belgium,
USA and Australia. Research is discussed from each of these
countries with the exception of Belgium, for which no literature
could be sourced. In addition, evidence from Canada is included.
4.3
This review of the international literature echoes many of the
issues discussed in the preceding section of the report. There is
a lack of clarity, for example about what kind of services should
be described as ‘out of school care’. There is a consensus that
OSC has both economic and social benefits and, therefore,
makes a positive contribution overall.
4.4
The international literature shares some of the methodological
weaknesses of the UK based literature, in as far as the benefits
of OSC are often assumed rather than evidenced.
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International Definitions of Out of School Care
4.5
As discussed in a previous section, it is generally recognised
that reaching a single, overarching definition of OSC is
problematic even within the context of one country. OSC is
associated with a range of types of services, including ‘out of
school childcare’, ‘out of school lesson time’, ‘homework clubs’
and ‘holiday clubs’. The task is further complicated when an
international dimension is added. Below is a summary of the
different definition of OSC in the countries considered in this
review.
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Sweden
4.6
The Swedish equivalent to OSC are ‘leisure time centres’ that
provide care for school age children, or children judged to be in
‘need of special support’, whose parents are in employment,
training or studying during the time when their children are not
in school (mornings, afternoons and during holidays) (The
Swedish Institute, 2001).
Norway
4.7
Norway offers a range of what are described as ‘after school
programmes’, the purpose of which is described as care and
supervision for children for the hours after school. The aim of an
after school place is to provide children with a safe place to stay
while their parents are at work (Social Cohesion and Quality of
Life, 2001).
Denmark
4.8
In Denmark such care is provided as part of a more general
programme of ‘day care services’. ‘Age integrated centres’ enrol
children from six months to fourteen years, with school aged
children attending after the school day. The aim of this out of
school care is to foster responsibility on the part of the older
children and to foster continuity of adult/child and child/child
relations, since children remain with the centre until early
adolescence (Polakow, 1997).
USA
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4.9
Fashola (1998) describes three types of childcare that fall under
the category of OSC in the USA:

‘daycare’ – the provision of recreational and cultural
activities to children while their parents are at work;

‘after-school programs’ – as likely to emphasise academic
as well as non academic activities;

‘school based academic extended-day programs’ – closely
linked to academic work carried out during the day at
school, and likely to provide additional educational
support to those pupils that require it.
4.10 It is the first two of these service types that correspond most
closely to the types of OSC currently provided in the UK, as the
third definition corresponds more closely to study-support
programmes in the UK. A paper prepared by the National
Institute in Out-of-school Time (2000) defines an ‘out-ofschool time program’ (OST program) in the following terms:
“…a wide range of program offerings for young people
that take place before school, after school, on weekends,
and during the summer and other school breaks…”8
Canada
4.11 The Child Care Bureau of Canada (1997) describes Out-ofSchool Time School-Age Care as the provision of care for
children whose parents are in the workforce or pursuing
education.
8
‘Making an Impact on Out-of-School Time’ Prepared by the National Institute on
Out-of-School Time for the Corporation for National Service, June 2000
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Australia
4.12 In Australia, the Department of Family and Community Services
describes OSC in the following terms:
“An out of school hours care service can comprise before
school and/or after school and/or vacation care. Programs
focus on stimulating development, providing social and
recreational activities for children of school age. Care can
also be provided on pupil free days.” (Provision of Outside
School Hours Care by Other Sector Operators from 1
January 2001).
4.13 This review of the international literature indicates that OSC
outwith the UK has broader dimensions. Specifically, OSC is
linked
to
advancement
of
educational
achievement.
This
contrasts with the UK, which continues to focus OSC on play and
care, although the role of education and study support is
growing.
4.14 There are, however, similarities with provision in the UK in terms
of a service which provides a safe place for children to be cared
for while their parents are either in paid work or are accessing
training. There is a general commitment to the welfare of the
child in all instances, but, as the literature from the UK also
emphasises, the principle aim of OSC is to facilitate parents’
access to work.
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The Content and Policy Context of OSC Provision
4.15 The review of the international literature reveals some variation
in terms of the type of OSC services provided, the location of
care, staff qualifications and relation to the type of providers.
The following table provides an overview of these differences,
while the following analysis draws out the main points for
discussion.
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Country
Ethos
Staff qualifications
Cost
Location
Providers
Sweden
Recreational and
educational activities.
Closely linked to
school, meant to
supplement schooling
70% of staff have
degrees in recreational
or leisure education or
some type of teaching
qualification
Fee determined at local
level and determined by
parents income
Dedicated leisure
centres
Public provision
Denmark
Provides forum for
educational and social
development of child
Centres run by certified
teachers assisted by
paraprofessionals
Determined at local
level but fairly standard
costs
Day care centres
Supported by public
funds but funds
distributed by local
kommune to public and
private providers
Norway
To provide children
with a safe place to
stay while parents are
at work
USA
To provide a variety of
enrichment programs
including play,
academic work and
opportunities for social
development
Costs vary but
subsidised places are
available
Canada
Provide care for
children while parents
are in work or training
Vary from province to
province. Costs are
largely the private
responsibility of parents
Australia
Programs focus on
stimulating
development,
Families using the
service are eligible to
apply for Child Care
Public, voluntary and
private. Public sector
provides for the
majority
Schools, community
centres, sports and
recreational centres.
Schools, community
centres churches and
other non-profit
making organisations
Services generally
located on or near
school grounds.
Services provided by
non-profit community
groups, religious and
61
providing social and
recreational activities
for children of school
age
Benefit
charitable
organisations, school
boards, or councils and
local governments
Sources:
Sweden: The Swedish School System, The National Agency for Education
Denmark: Who cares for The Children? Denmark’s Unique Public Child-Care Model’ 1997
Norway: Social Cohesion and Quality of Life: Norway, Conference of European Ministers responsible for Family Affairs, XXIV Session
USA: Making an Impact on Out-of-School Time, National Institute on Out-of-School Time, 2000
Canada: Child Care Bureau: Out of School-Age Care. 1997
Australia: Australian Bureau of Statistics, 1999
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4.16 Common to all OSC provision in each country is the commitment
to either provide care for children and/or to take
the
development/ advancement of the child further. While it is
difficult to ascertain the exact detail of the activities provided in
each country, it is apparent that there comprises a mixture of
recreational and more academic-based activities.
4.17 OSC in each of the countries reviewed is underpinned by an
ethos of positive child development. In Norway, for example,
childcare forms just one part of a wider policy to protect and
care for children. Norwegian child and youth policy aims at
ensuring that children and young people have:

security through stable social relations;

proper care at home and through public services;

opportunities to participate actively in and exert an
influence on society (Social Cohesion and Quality of Life,
2001).
4.18 The National Agency for Education in Sweden comments that
childcare forms one strand of a wider educational policy, that
aims to keep an overall view of the child’s development and
learning by joint working between health care, social care,
fostering and teaching. More specifically, OSC (leisure-time
centres) function to support the development of the child and
provide
them
with
‘meaningful’
recreation
(The
Swedish
Institute, 2001).
4.19 The National Institute on Out-of-School Time (2000) in the USA
suggests that quality OST programs should aim to provide the
following:

keep young people safe;
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
provide opportunities for positive and consistent
relationships with adults and peers;

offer time for physical recreation and unstructured play;

promote development of positive character traits and life
skills;

help strengthen academic skills.
4.20 Each country, however, exhibits a ‘mixed economy’ of provision
in as far as there are a combination of public, private and
voluntary sector service providers.
There are significant
differences between the provider countries in terms of funding
and payment for OCS provision. Sweden, Denmark and Norway
can be described as tending more towards publicly-funded
provision. However, in most cases public funding is available to
both public and private providers. The amount paid by parents
varies between and within each of the three countries but there
are subsidies available and payment is often linked to the
parents’ ability to pay. The USA and Canada are more
representative of private and voluntary provision of OSC and it
has been argued, for example, in the Canadian context that
there is no coherent child care system, as levels and methods of
funding vary between province and territory, as do the range of
services (Campaign 2000, 2001).
The cost of childcare in
Canada is largely the private responsibility of parents.
4.21 In
terms
of
the
content
and
policy
context
of
OSC
internationally, there is a degree of variation in the type of
activities provided, the funding of OSC, the providers of OSC and
in terms of the objectives of OSC.
4.22 As previously discussed, the USA is characterised by a greater
commitment to enhancing academic achievement than the other
countries reviewed. Here too, there is a greater emphasis placed
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on the benefits of OSC to the individual. In contrast, the policies
of countries such as Sweden place greater emphasis on the
benefits to the wider community.
Provision of OSC – models of delivery
4.23 The extent of OSC provision varies in terms of mechanisms for
delivery, the extent of provision, and provision for specialist
groups such as children with additional educational needs.
4.24 Evidence from the international literature suggests that there are
a variety of mechanisms and management structures.
4.25 There are a range of management and organisational structures
to be considered, each of which will have an impact on both the
quality of the care provided as well as the costs of establishing
and running an OSC club. Detailed consideration of the extent to
which costs vary, according to management structure, will be
dealt with in the final section of this report.
4.26 OSC can be provided via the following mechanisms:

Not for profit community and parent groups;

Religious and charitable organisations;

Schools;

Local government;

Private providers.
4.27 This review of the international literature indicates that in all
instances there is a mixed economy of provision but that the
main form of provision is largely determined by the main source
of funding.
4.28 Therefore, provision of childcare in general in countries such as
Sweden, Denmark and Norway is principally lead by public
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organisations.
In
contrast,
the
USA
and
Australia,
are
characterised by far stronger voluntary and private provisions.
4.29 OSC does not form the main element of any one national
childcare strategy, despite there being a body of literature
extolling the benefits of such care for both children and parents.
4.30 While many countries have extensive provision of early years and
pre-school childcare, OSC is less widely available. The following
discussion looks at two examples from two different countries
with very different childcare structures. Sweden is taken to be
more representative of countries with a strong emphasis on the
public provision of childcare, while the USA largely depends on
voluntary and private provision.
4.31 In Sweden, some 64% of children aged between 1-5
years
attended pre-school in 1999. A significant number of younger
children, those between six and nine, continue to use childcare
services in the form of leisure time centres. However, that figure
drops dramatically to just 7% of children aged between 10-12
(The National Agency for Education, Sweden, 2001).
4.32 Thus, although there were three times as many children
attending leisure time centres in 1999 as attended in 1990,
older children are less well represented amongst service users.
4.33 Table 4.1 provides evidence that the main users of childcare are
younger rather than older children.
Table 4.1:
Proportion of children in different age groups
registered in Swedish childcare 2000, as a %*
Age of child
1
Pre-school/
leisure-time centre
(%)
Family day
care (%)
Total (%)
6
42
36
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2
67
11
78
3
71
11
82
4
76
10
86
5
78
10
88
1-5
66
10
76
6-9
64
2
66
7
0
7
10-12
*
Pre-school is for children aged 1-5, leisure time centres are for children
aged 6-12 and family day care is for children aged 1-12
4.34 According to the American Bureau of the Census, in 1997 there
were approximately 24 million school-age children with parents
either in the workforce or engaged in education/training.
4.35 While it should be acknowledge that not all of these children will
require out of school care, a substantial number would require
OSC provision. Data indicates that in 1991, only 1.7 million
children in kindergarten through to grade 8 were enrolled in
formal before and/or after school programmes. This information
indicates that there may well be a tendency for only a small
number of children to make use of OSC provision.
4.36 The following were the most common forms of supplemented
childcare for school aged children with employed mothers: 3%
were cared for by in-house providers; 7% were in family day
care; 14% were in centres; 25% were cared for by a relative and
44% did not use any form of supplemental care.
4.37 Despite the different sources of childcare provision, it is
noticeable that in both Sweden and the USA only a limited
number of older children were using some form of formal out of
school care.
4.38 A review of the international literature reveals patterns of
provision can not be neatly divided between provision that is
targeted at specialist groups or that which seeks to be universal.
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Provision is best understood on a continuum, with some
provision in some countries weighed more heavily towards
universal rather than targeted provision.
4.39 Sweden offers an example of OSC as more universal provision.
The universality of childcare in general and OSC in particular in
underlined by the close association between childcare and the
education system. Under the Education Act, public childcare is
available to all children between the ages of 1-12, and delivered
either at pre-school establishments or leisure time centres.
4.40 Provision of OSC in the USA has a stronger emphasis on targeted
provision. The literature review carried out for this study
suggests that policy commentators are more concerned with the
potential positive impact of OSC on marginalised groups than
commentators from other countries.
4.41 It has been suggested elsewhere in this report that the potential
impact of OSC needs to be judged in the social policy context of
each country. The USA literature demonstrates a greater concern
with the potential of OSC to reduce crime and other problematic
forms of behaviour than the corresponding literature from the
Scandinavian countries (Brown, 1997).
4.42 In this sense, OSC in the USA can be understood as more
specifically targeted, and at disadvantaged groups in particular.
However, other more positive forms of targeting are also evident
in the form of childcare for children with additional educational
needs.
4.43 Such
targeting
of
services
for
children
with
additional
educational needs does not necessarily imply separate services.
In Sweden, for example, the needs of children with additional
educational needs are largely met within mainstream services.
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4.44 Despite differences in approaches, there are some similarities in
the provision of OSC in the USA and Sweden. Firstly, both appear
to be premised on a belief that OSC has significant social
benefits; secondly, only a small number of older children made
use of OSC, and finally, in both cases children with additional
educational needs are integrated into mainstream provision.
The Cost of OSC – International Evidence
4.45 The
international
literature
reveals
very
little
consistent
information on the costs associated with the provision of OSC.
For this reason, this chapter can only provide illustrative
examples.
4.46 The key aspects of cost are as follows:

parental fees, including the fees as a proportion of
parents monthly expenditure;

central and/or local government tax subsidies;

central/local government grants;

employee costs.
4.47 In all instances considered, parents made some form of financial
contribution, although in most cases this was on a sliding scale
or fees were partially subsidised by local and/or central
government. In Australia, families with children are able to claim
the Childcare Rebate, a Federal Government payment, if their
childcare costs exceed A$20.50 per week. Over 307,400 families
claimed the Childcare Rebate, representing 47% of those using
childcare provision.9
9
Child Care Australia: Australian Bureau of Statistics, 2000
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4.48 Much of the literature acknowledges that fees are subject to
regional variations, so no concrete figures can be given. While it
is not possible, therefore, to say exactly how much parents pay,
it is possible to estimate the proportion of their monthly income
spent on childcare. Data from the Child Care Bureau, USA
indicates that the lower income families spend a greater
proportion of their income on childcare compared to higher
income families (Table 4.2).
Table 4.2:
Percentage of Monthly Family Income Spent
on Child Care by Family Income in the USA (preschool care only)
Monthly income
Weekly Payment for
Child
% of Monthly
Income
$5000 or more
$91.93
6%
$3000 to $4999
$73.10
8%
$1200 to $2999
$60.16
12%
Less than $1200
$47.29
25%
Source:
Casper, LM (2000) What does it Cost to Mind Our Preschoolers? US Bureau of the Census, Current Population reports
4.49 Key factors that will determine the cost of care are discussed in
The Benefits and Costs of Good Child Care (Childcare Resource
and Research Unit, 2000). The following are identified as
influencing the overall cost of childcare in Canada:





staff/child ratios;
age of the child – the lower the age the more staff
required;
presence or absence of children with specific educational
needs;
skills/qualifications level of staff;
salary levels;
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


employee fringe benefits such as sick pay and pensions;
whether the care provided is full or part time;
premises.
4.50 It is not possible to identify the exact cost of OSC in this
literature review, mainly because there are a range of variables
that will determine the final cost. However, the international
review is helpful by providing evidence of the range of factors
that need to be considered in any cost/benefit analysis.
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The Benefits of OSC - International Evidence
4.51 The
following
discussion
provides
an
analysis
of
the
international literature in relation to the benefits of OSC.
4.52 One Canadian publication provided a useful starting point. When
asked to consider the costs and benefits, the authors make the
point that research is not yet sufficiently advanced to allow for a
detailed and reliable assessment of benefits and costs. In this
sense, existing research can not be definitive and evidence of
the benefits of OSC remain ‘suggestive’ rather than certain
(Campaign 2000, 2001).
4.53 There is a substantial amount of material relating to the benefits
derived from the provision of childcare in general, with some
material referring specifically to OSC. As discussed at the
beginning of this section, however, there is no completely
definitive measure of either benefits or costs. Much of the
literature advises that further longitudinal studies be carried out
to properly assess the perceived benefits of OSC and childcare in
general (Munton et al., 2001).
4.54 The following discussion divides the assumed benefits under the
headings: economic benefits and social benefits.
4.55 There are three significant caveats which are relevant here and
which have been highlighted in the previous chapter.

Firstly, whilst significant benefits have been reported, all
studies report that the actual benefits are dependent on
the quality of the childcare provision;

Secondly, this survey of the international literature on the
benefits of OSC suggests that few studies can properly
control for other factors that influence the perceived
benefits to the child.
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
Much of the literature relates to the provision of childcare
in general rather than the provision of OSC.
4.56 These caveats need to be borne in mind when assessing the
quality of the evidence presented to explain the benefits of OSC.
Economic Benefits of OSC
Parents and carers
4.57 It has been widely reported that increasing access to good
quality childcare outside of school hours can assist parents in
obtaining and sustaining paid employment, maintaining a
parent’s earning power (Economic Opportunity Institute, 2000).
Research from the USA and Canada place particular emphasis on
this beneficial aspect of childcare in general (Campaign 2000,
2001).
Evidence
also
exists
of
childcare
providing
the
opportunity for parents to take on additional working hours,
which increases their families disposable income, and also may
improve their chances for promotion (Munton et al, 2001).
4.58 Access to paid work ultimately benefits both parents and
children, according to the Canadian organisation Campaign
2000 (2001). However, obtaining and sustaining employment is
not just dependent upon the availability of out of school
childcare, but is also influenced by availability of paid work,
parents’ levels of skills and qualifications, their earning capacity
and the age of the child. The availability of OSC is not in itself
sufficient to "…maintain the attachment to the workforce or
facilitate significant economic and personal advancements…".
(Campaign 2000, 2001). Other supports necessary include
supportive work environments, emotional and physical support,
and affordable housing (Campaign 2000, 2001). Research from
the USA and Canada notes the difficulties parents might face
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when they are working or returning to work. It would appear
from the international literature review that support mechanisms
are less of a concern in Scandinavian countries, where there is
generally stronger support for working families.
4.59 The availability of out of school care also allows parents to study
and train, which, in the long term, potentially increases the
family's standard of living by increasing the parents' position in
the labour market and their opportunity for employment.
4.60 Data from Australian literature confirms that the majority of
parents use formal and informal childcare for work-related
reasons. Nearly half of all children using formal childcare did so
because of their parents' work commitments. This figure was
particularly high in terms of utilising before and after school
care programmes: 85% of those children using OSC did so
because of parental work commitments (Australian Bureau of
Statistics, 1999).
4.61 A Canadian study of the relationship between reliable childcare
and lone mothers’ ability to sustain their participation in the
labour market concludes that high quality child care does allow
mothers to return to work or to study. However, their decision to
enter the labour market was determined by other significant
factors such as the availability of paid work, their earning power
and the age of their children (Campaign 2000, 2001). From this
evidence, it is possible to conclude that childcare in general
(including
OSC)
does
benefit
parents
and
communities
economically, but, importantly, that the presence of childcare
alone will not induce parents to enter the labour market.
Children
4.62 As in the UK, there is very little direct information available from
this review of the international literature to be able to identify
specific economic benefits to the child. However, most studies
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do conclude that if parents are able to gain access to paid
employment, children will benefit from a higher level of family
income (Campaign 2000, 2001).
4.63 Munton et al (2001) argue that the economic benefits to children
can be inferred from research relating to the significant impact
that poverty has on children. The report describes poverty as
"…the single most significant risk factor for child development…
As a result, some of the effects of out of school provision might
have on child outcomes may be due, at least in part, to the
effects that attending provision has on parental employment and
income" (Munton et al, 2001 – emphasis added).
Community
4.64 In a study recently conducted in Chicago, it was reported that
financial benefits to society from involvement in OSC included
lower expenditure on benefits, and higher revenue from taxes,
through the higher incidence of employed parents in the area,
and also ‘reduced costs to society for remedial education and
crime (Economic Opportunity Institute, 2002). It was estimated
that communities were saving over $7 for every $1 invested in
Chicago’s Child-Parent Centres. This is one of a very few studies
to actually calculate the costs and benefits of OSC in economic
terms (Brown 1997).
4.65 Communities with good quality childcare are also more likely to
attract good quality workers, therefore enhancing the economy
(Economic Opportunity Institute, 2002). ’Vital’ communities are
seen as essential for the development of strong businesses.
Employers
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4.66 Literature from the USA also suggests that employers benefit
from the provision of childcare generally in the following ways:





lower employee turnover;
reduced tardiness and absenteeism;
higher employee moral and commitment;
lower training and recruitment costs;
increase
employee
productivity
and
(Economic Opportunity Institute, 2002).
performance
4.67 The absence of good quality childcare is estimated to make
parents more likely to be late for work, be absent and generally
to be distracted from their work if they are concerned about
their childcare arrangements. It is suggested that absenteeism
caused by poor quality childcare costs American businesses
more them $3 billion a year (National Conference of State
Legislators, 1997). In addition, the same report (Economic
Opportunity Institute, 2000) estimates that working parents lose
the equivalent of six days of work per year due to childcare
problems.
4.68 The presence of good quality childcare means that parents, and
especially female parents, are more likely to be attend work on a
regular basis thus sustaining their position in the labour market
and take advantage of training opportunities. Parents are able to
maintain their skills, therefore employers experience less
financial burdens with regards to recruitment and training
10
(Economic Opportunity Institute, 2000).
4.69 The evidence gathered from the international literature seems to
confirm the economic benefits discussed in the review of the UK
literature. It appears that the provision of OSC is widely linked to
increased employment and training opportunities for parents,
10
How Does High Quality Child Care Benefit Business and the Local Economy, 2002
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increased household income and direct benefits to employers in
the
form
of,
for
example,
reduced
staff
turnover.
The
international literature also provides some evidence of monetary
costs and benefits of childcare.
Social Benefits of OSC
Children
4.70 The social and educational benefits of childcare in general, and
OSC in particular, are described in detail in the international
literature. However, it is worth reiterating the points made
earlier, that, firstly, it is difficult to isolate the impact of
childcare distinct from other social factors and, secondly, there
is a need for continued longitudinal studies to confirm the
assumed benefits.
4.71 A range of social and educational benefits are described in the
literature and are summarised as follows:
Relationships:
The development of quality relationships with
peers and adults. This kind of benefit is
common to the literature from all countries.
There is a recognition that childcare in
general provides children with a range of
opportunities to interact with and form
meaningful relationships with others. In
Sweden, older children are encouraged to
care for younger children as well as to
interact with adults (The Swedish Institute
2000).
In Norway, the underlying ethos of childcare
is to promote security through supporting
stable social relationships (Conference of
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European Ministers for Family Affairs, XXIV
Session). In the USA, there is some evidence
to suggest that children who spend more
hours on their own or who begin to care for
themselves at an earlier age are at greater
risk of poorer social and academic outcomes
(National Institute of Out of School Time,
2000).
Educational:
A positive impact on behaviour in class,
recreational reading and attainment grades
has been found (National Institute on Out of
School Time, 2000). In Sweden the childcare
system is integrated into the school system,
to ensure continuity between the national
curriculum and the activities provided within
the context of childcare (The National Agency
for Education, 2000).
The USA is also characterised by strong
support for study skills. This is achieved
through a variety of activities, including
allowing children to explore their interests
and hobbies, ensuring that children complete
their homework, and that those who require
it are given the support to develop their
academic skills (National Institute on Out-ofSchool Time, 2000).
Further research in Canada also found links
between childcare and success in school and
later life. “Children under adult supervision in
a formal program during after school hours
have demonstrated improved academic
achievement and between attitudes toward
school than their peers in a self or sibling
care.” (Child Care Bureau, 1999)
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Pettit et al (1997) in the USA reported links
between child care and academic success of
children aged around 11 years. Children
from ‘low socio-economic status’ families
were studied and it was found that those
children who had received parental care were
less likely to demonstrate academic success
compared to those children from the same
families who attended formal provision.
These children who had experienced formal
childcare had fewer subsequent behavioural
problems, and greater social interaction
skills. This is also demonstrated in a study
carried out by Posner and Vandell (1999) in
the USA, where it was found that "children
who attended after school programs spent
more time on academic and extracurricular
activities whereas children in informal care
spent more time watching TV and hanging
ou.” (Munton et al, 2001).
In Posner and Vandell (1999) study, children
from ethnic minorities who participated in
out of school care and spent more time
socialising and interacting with adults and
peers, did better academically (Munton et al,
2001).
Disruptive
behaviour:
Children engaged in extracurricular activities
were found to be less likely to be using drugs
or having under-age sex (US Department of
Health, 1996).
There is some evidence to suggest that early
childcare
education
results
in
lower
incidences of criminal behaviour later in life
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(The Economic Opportunity Institute, 2001).
However, nearly all this evidence is drawn
from studies related to impact of early
childcare, rather than depending on evidence
from studies on the specific impact of OSC.
Research carried out in Chicago, for example,
of government funded Child-Parent Centers,
traced 3 and 4 year olds enrolled in the
program for 15 years. Those children who did
not participate in the scheme were 70% more
likely to be arrested for a violent crime by the
age of 18 (Reynolds, 2001).
Again, whilst this research does not
specifically related to the provision of OSC, it
is nevertheless a good example of the relative
strength
of
evidence
gathered
from
longitudinal studies.
Health and
Safety:
OSC offers safe places for children under the
supervision of adults. In addition, OSC staff
can be vigilant for health and safety issues
such as behaviour problems and physical
illnesses (National Institute on Out-of-School
Time 2000).
Evidence from the Economic Opportunity
Institute (2002) suggests that there is a link
between the provision of early childhood care
and improved health status. In the report
‘The Link between Early Childhood Education
and Health’ it is suggested that the
communication and coping skills developed
at this age are a vital resource for assessing
risk taking behaviour in later life. Such skills
are learnt during early education but children
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who do not benefit in this way are more likely
to be affected in adverse ways that will lead
to cognitive, social and behavioural delays.
4.72 The evidence considered in the above discussion does point to
childcare in general as having positive benefits for a child’s
development.
However,
as
highlighted
in
the
previous
discussion, much of that evidence is either assumed or is
anecdotal. It also needs to be borne in mind that each country
offers a different form of OSC. For this reason, in assessing the
impact of OSC provision, it is not possible to compare like with
like. The main weakness of the literature in terms of this study is
that much of the evidence relates to the provision of childcare in
general rather than OSC specifically.
Community
4.73 This review of the international literature suggests that social
benefits extend to the community as well as to the child and
their family.
4.74 The social benefits of OSC for the community can be divided
into more general and then more specific benefits. The more
general impacts are discussed above, in terms of economic
benefits to the community, improvements in levels of income,
and improvements to the health and wellbeing of children.
4.75 More specifically, the literature identifies the benefits to the
community in terms of reductions in levels of potentially
disruptive behaviour. This is true of all the countries reviewed as
part of the literature survey, but is most noticeable in the
literature from the USA. The details of such benefits are
described in relation to the social benefits to the child, as above.
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4.76 The advantage of OSC is that it provides young people with safe
and secure place to engage in supervised activities. In the USA,
for example, young people between the ages of 12 and 17 years
are at greatest risk of committing violence between 2 p.m. and 6
p.m. Therefore, out of school care should reduce the incidence
of crime occurring by children.
Therefore, the safety of the
neighbourhood may be dependent on good quality childcare
amongst other factors (Economic Opportunity Institute, 2000).
4.77 Longitudinal studies were carried out in Chicago, tracing
children from the ages of three and four years until participants
were 18 or 19 years old.
This research found that those not
involved in early pre-school programs were 70% more likely to
commit violent crimes than those who participated in pre-school
care (Economic Opportunity Institute, 2000).
4.78 Those children with higher levels of social, academic and
behavioural skills are less likely to leave school at an early age,
and therefore less likely to become involved in vandalism, youth
crime, and drug and alcohol abuse (National Institute on Outof-School Time, 2000). In the USA, the Out of School Time
programs can also benefit the community through ‘servicelearning projects’ whereby children interact and assist one
another and in doing so become more aware of their role within
community involvement (National Institute of Out of School
Time, 2000). Research carried out by the Perry Pre-school
program in America also found that those who participated in
their childcare programmes were half as likely to become
teenage parents (Economic Opportunity Institute, 2000).
4.79 In many ways the benefits to be derived from participation in
OSC are shaped by the social policy priorities of the individual
countries. In the Scandinavian countries, for example, the main
emphasis is on the development of the child, and their social
and educational skills. While such benefits are also part of the
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agenda in the USA, there is also a strong emphasis on how OSC
can contribute to two of the main social issues, high levels of
crime and teenage pregnancies.
Conclusion
4.80 This review of the international literature on the impact of OSC
has focused on Sweden, Denmark, Norway, Canada, USA and
Australia.
4.81 While there are variations in how OSC is defined, the underlying
purpose of the majority of schemes remains to care for and/or
provide for the development of the child out of school times;
while parents are engaged in paid work or training. In contrast
to OSC provision in the UK, the review of the international
literature
indicates
a
stronger
emphasis
on
educational
achievement.
4.82 There were more noticeable variations in the funding of OSC.
Countries such as Denmark are characterised by mainly public
funding. In contrast, the provision of OSC in the USA is mainly
provided by schools, community centres, churches and other
non-profit making organisations.
4.83 The principle benefits to be derived from OSC specifically, and
childcare in general, do not tend to differ greatly between the
countries covered in this literature review or within the UK. It is
widely recognised that childcare contributes to the social and
academic development of the child, while allowing parents to
participate in the workforce. Ultimately both sets of benefits
contribute to the well being of the community, by raising income
levels and having a positive effect on the behaviour and
attitudes of children.
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4.84 The main difference between the review of international and UK
literature is the emphasis placed on educational achievement in
the international literature, which is reflected in the systems of
some countries; for example, the integration of childcare and
education systems in Sweden.
Summary: Out of School Care – An International Review
This review of the international literature indicates the same
variations in definitions of service as the review of the UK-based
literature. This variation reflects the diversity of service provision
on the ground.
OSC is delivered via a variety of mechanisms, including not for
profit community and parent groups, religious and charitable
organisations, schools and local government, as well as private
providers.
The majority of children using OSC are under 12 years of age,
suggesting that there is a serious gap in the provision of
services for older children.
There is little or no specific evidence of the costs associated with
the provision of OSC. However, the literature does provide some
useful information about the range of factors that will impact on
the costs of OSC.
Whilst the international literature points to some significant
social and economic benefits associated with OSC, there is little
evidence to substantiate these claims.
The main benefits associated with the provision of OSC are in
terms of improving children’s social relationships, enhancing
their educational achievements, decreasing disruptive behaviour
and having a positive impact on the health and wellbeing of the
child.
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Few studies can properly control for other factors that influence
the perceived benefits to the child.
The majority of the literature relates to the provision of childcare
in general rather than OSC specifically.
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Chapter Conclusion
4.85 There are a number of key points that can be made from the
review of literature of benefits of out of school care. The
following list provides a summary of the evidence of the main
benefits associated with the provision of OSC.
-
The literature and research on the benefits of OSC is still
small but growing, and so far has focused more on the
economic benefits of OSC to parents in terms of labour
market access. However, there is little in the way of
specific information relating to costs of OSC.
-
There is a growing amount of research on the social
benefits and longer-term benefits of OSC on different
social factors. Much of the research still lacks evidence,
and much is assumed or anecdotal. There is a need for
more rigorous research in these areas.
-
In the UK, economic benefits remain focused on the
parent, and there remain gaps in studies of other players
such as children. Evidence does exist of economic benefits
for others; most notably these benefits are to employers
and the community. There is a lack of evidence of
economic benefits of OSC for the child themselves
although the vast majority of literature assumes benefits
are derived from those experienced at the parental and
family level, for example, increased income and reduction
in stress.
-
It is not surprising that there is substantial evidence of the
economic benefits of childcare (including OSC) to parents
in the UK and overseas. Given that the main aim of the
Childcare Strategy in the UK and in other countries is to
facilitate this access to the labour market and derive
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economic benefits from it, then childcare and OSC is
achieving its primary objective. Research has looked
especially at lone parents and regeneration areas, and
highlighted
significant
impacts
on
poverty
and
disadvantage.
-
Increasingly, literature in the UK and internationally is
beginning to highlight and provide evidence for the social
benefits of childcare and OSC. Given that a parallel aim of
OSC is to provide a safe environment for children to play,
it is not surprising that one of the most evidenced social
benefits of OSC is that of play opportunities for children.
The education role of OSC is less evidenced in the UK than
in the international literature, where OSC often has an
intrinsic educational role and is linked to the education
system. This is not the case in the UK, although there are
growing opportunities combining the play and education
element of OSC. In the UK however, it is not considered a
principle outcome of OSC to help children achieve
academically at school. Other social benefits evidenced for
children include opportunities for social interaction with
different children, especially important for ‘only’ children
and those from rural areas.
-
Social benefits also exist for parents in terms of stress
reduction and ‘peace of mind’, and for employers in terms
of a less stressed workforce. A significant number of
studies highlighted the social benefits for communities,
including schools and service providers. OSC was seen to
contribute
to
developing
social
responsibilities
and
citizenship amongst children, and diverting them away
from more negative and anti-social behaviour.
4.86 Overall, this review has evidenced a number of significant and
important
benefits
for
parents,
children,
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community and schools. These benefits are both social and
economic. It has also highlighted the need for more research to
investigate more rigorously, and over longer time periods, the
impacts on a range of different players.
4.87 In terms of further research, Munton et al (2001) have
conducted a comprehensive feasibility study into a longitudinal
study of OSC impacts on children. They suggest that research
can be extended to consider the measurement of other areas
such as social skills, mental health, self-esteem and maturity,
attitude to learning, creativity and problem solving skills, and
behaviour problems, and for older children they suggest the
need to monitor drug/substance abuse, involvement in crime,
and
teenage
pregnancy
and
sexual
behaviour.
These
suggestions indicate a whole range of benefits from OSC which
as yet have not been evidenced and can only be assumed.
4.88 Appendix 3 contains the benefits framework, summarising
which benefits were evidenced in the UK or international
literature or at all.
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5
THE COSTS OF OSC: MEASURING THE ECONOMIC
IMPACT
Introduction
5.1
Chapters 3 and 4 presented a detailed discussion of the benefits
associated with OSC provision. In this chapter, we focus on the
economic costs of providing OSC. It became clear from the
analysis of the literature on benefits that most evidence
supports the economic benefits of OSC to parents and that little
robust
evidence
exists
that
substantiates
other
benefits,
especially social benefits, assumed to derive from OSC. It was
also evident from this exercise that neither the UK or
international literature contained detailed information about the
costs of providing OSC services.
5.2
Given the available information and evidence, the following
discussion focuses on OSC facilities as economic contributors
which make a positive economic impact on a range of sectors.
The chapter explores the economic costs and benefits of OSC
under the following headings:

Economic
arguments
for
public
investment
in
OSC
provision;

The benefits of OSC: for parents, for the community and
for public investment;

Constraints and qualifications on economic benefits of
OSC;

The costs/benefits of OSC: three models.
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Economic Arguments for Public Investment: OSC services as
economic contributors
5.3
Chapters 3 and 4 have provided evidence that OSC facilities
make a positive economic impact and are both direct and
indirect
economic
contributors.
OSC
clubs
are
direct
contributors in that they operate, usually, as small businesses
(although can grow larger in scale) and create local employment
with a knock-on financial gain for the local economy. They are
also indirect contributors in that, as a result of the services they
provide, they enable and facilitate unemployed parents to take
up paid employment and training opportunities. As a result, it
can be argued that childcare services have a role to play in
advancing economic development. This in turn highlights the
importance of being able to measure the economic benefits and
costs of OSC, to assess whether the claims made for the services
can be justified.
5.4
The premise for the research (that OSC is an economic
contributor) raises questions regarding to the perceptions of out
of school childcare held by funders and policy makers. Whilst
the approach taken in this work has been to view the services as
small businesses, there is no clear or shared agreement across
the Childcare Partnerships or within Government about the
economic status and value of Out of School Care.
5.5
The argument for public investment is further underlined by the
apparent failure of the private sector to provide sufficient OSC
provision. Stand alone OSC provision is not usually economically
viable without some public funding, as evidenced in recent
research
carried
out
by
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regarding
management models of OSC. Such funding may be provided in
the form of cash investment, investment in kind (such as the
free provision of school premises) or in the form of free training
provided by local Childcare Partnerships.
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The Economic Benefits of Setting Up and Providing OSC
The economic benefits to parents
5.6
The benefits to parents are discussed in the literature review and
there is substantial evidence that, in general, parents use
childcare primarily to allow them to seek paid work or training.
5.7
Results were reported by Hinds and Park (2000) and trueGrit
(1998)
in
Scotland
who
evidence
linkages
between
the
availability of childcare and the ability to go out to work, to
benefit from earning money, increase their ability to do their
job, and decrease unplanned absences. Evidence from the USA
indicates that for childcare in general, low income families pay a
higher proportion of their monthly income on fees than families
with higher incomes11.
Without the provision of free or
subsidised places, the cost to low income families may well be
prohibitive.
5.8
There is some evidence of the specific benefits associated with
the provision of OSC. Community Enterprise in Scotland (1996)
found that an OSC initiative in Glasgow not only benefited nonworking parents but made a significant impact on those already
in paid work. 74% of working parents felt that their ability to do
the job had increased, while 61% reported that they found their
job more satisfying.
5.9
It is reasonable to conclude that access to OSC services can
allow parents and mothers in particular to access and maintain
employment. Beckett-Milburn and Kemner (2001) argue that
mothers find school holidays and school closures most difficult
11
Casper, LM(2001 What does it Cost to Mind Our Pre-schoolers? US Bureau of the
Census, Current Population reports
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to deal with in terms of childcare arrangements. Thus, OSC may
well provide the solution to such obstacles. The authors
conclude that working mothers need additional support in the
form of flexible childcare to accommodate working hours,
school holidays and closures.
5.10 It should be recognised that benefits that accrue to working
parents will also accrue to parents in further or higher
education.
Specific
institutions
own
funds
are
Childcare
available
Funds.
from
However,
educational
awards
are
discretionary.
5.11 The barrier of the costs of childcare is highlighted by the
example below. This example is of a lone parent with a child
over 5 years old and calculates the benefits to the parent of
being in paid work (with support for childcare) as opposed to
being on welfare benefits.
Benefits related to receiving
Benefits related to being in
welfare benefits
paid work
Income support,
£53.95 Wage @ £4.50 per
personal allowance
hour for 37 hours
per week, lone
per week
£166.5
0
parent 18+ years
Dependent child
£15.90 WFTC @ 70% of
£52.50
cost
Lone parent
£22.20 Amount paid by
premium for council
parent for OSC
£22.50
tax
Housing Benefit
£22.20 Net income
£219.0
0
Child Benefit
£17.55 Deductions in the
form of Income tax
Total weekly income
£131.1
8
Total weekly
income
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Source: Benefits Quick Guide 2002/3 www.north-ayrshire.gov.uk
5.12 On the basis of these calculations, the parent, with the
assistance of significant childcare subsidies, would be better off
working by £35 per week, an income increase of 25%. However,
it should be recognised that, especially at the initial stages,
there may be additional costs associated with starting work such
as the purchase of suitable clothing and transport. Therefore,
the figure of £34.69 as an economic gain needs to be taken as
an optimistic assessment of the overall benefit. Without
childcare subsidies, this gain would be substantially reduced.
The economic benefits to the community
5.13 The overall benefit of OSC services to the local economy are that
they form part of the local economic infrastructure and are
arguably as essential to that infrastructure as roads, factories,
offices, transport, education and training services, and utilities.
5.14 The principle underpinning the Government Welfare to Work
policy is that all those who are able to work should be given the
opportunity to work.
Without the provision of Out of School
Childcare, many parents, especially mothers and lone parents,
would not be able to take up available employment or training,
and many employers would be restricted in the pool of available
labour.
5.15 The benefits of OSC also accrue to parents in work. There is
evidence to suggest that the provision of good quality childcare
provides parents with a sense of security that ultimately benefits
the employers, because parents are less likely to be distracted
by childcare arrangements and are also less likely to take time
off work to care for sick children. Dex and Smith (2002) found
that family friendly policies (including help with childcare) are
associated with improvements in employee commitment to
private
sector
establishments.
They
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improvements in the quality of performance and a reduction in
labour turnover figures.
5.16 In the publication, Childcare: A Business Case (Scottish Power,
1997), the following formula is used to calculate the savings,
and therefore the benefits, of childcare in terms of days off not
taken by parents to care for their child. This highlights the
importance of childcare in reducing unplanned absenteeism.
Salary + employment costs (S) / by 260 (the average number of
days worked in one year), x (N) the number of days taken to care
for children = (C) the cost of leave to care for sick children.
5.17 Within Scotland, there is an additional policy benefit in that OSC
services not only employ and train unemployed individuals from
economically disadvantaged areas, they also enable parents
from disadvantaged areas to take up employment or training,
thereby contributing to the policy agenda of social justice and
social inclusion.
5.18 In some communities, individuals involved in setting up and
running OSC services are demonstrating entrepreneurial and
business skills which are contributing to the general social
economy development within their area. The potential for OSC
to diversify into other areas of social care such as elderly care,
care of people with disability and so on, is significant and has
been recognised as such by some of the more ambitious Social
Inclusion Partnerships.
The benefit to the public purse: avoided costs
5.19 The literature review indicated that some evidence exists to
support the idea that OSC makes a positive contribution to a
child’s educational and social development.
It is possible to
identify a range of costs associated with supporting children
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with additional educational needs and young people in care or in
Offenders Institutes, for example. Nearly 50% of young people
in Young Offenders Institutes have literacy problems.
In
addition to the costs of caring for someone, currently £560 per
week, there are additional wider impacts such as loss of revenue
since these people are less likely to be employed when they
leave care.
5.20 If such costs are to be considered there must be further research
to identify the direct costs and benefits associated with OSC. In
addition, further research would need to take into consideration
hidden and indirect costs.
The economic benefits to the Exchequer
5.21 The principle benefit to the Exchequer is in the form of realising
previously forgone revenue in the form of National Insurance
Contributions and Income Tax. There will also be a number of
fringe benefits that cannot be calculated precisely but should be
borne in mind.
Such additional benefits include, Council Tax
Benefit and having extra funds to spend in the local economy.
5.22 The economic benefit of OSC for the Exchequer can be
presented in the following formula:
A Parent receives Y amount of benefit, which will be a saving to
the government when this parent moves into work.
Z is the
amount of grant funding from the government per parent for
childcare. This is a cost to government. Parent X gains a job
earning A, of which the net return to the Treasury (if taking into
account tax credits) through Tax and National Insurance is B.
This is a benefit to the Exchequer.
5.23 For this parent, the total cost/benefit to the Exchequer can be
calculated as follows:
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Y+B–Z
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Constraints On and Qualifications to the Benefits of OSC
Provision
Timeframes for assessing economic impact
5.24 As with any business, the potential economic impact of OSC
needs to be considered within specific time frames.
5.25 For a number of reasons, most OSC services are not likely to
generate significant economic gains in the first two to three
years of their existence. As with any business, there needs to be
both capital and revenue expenditure up front and it is unlikely
that an OSC service will immediately run at full capacity and
thereby balance the books.
It will nevertheless need to be
staffed and equipped in line with regulations set by the Care
Commission such as the space available per child and ratios of
children to staff (recently changed from 1:10 to 1:8).
On that
basis, a club will not generate sufficient income in the shortterm to break even and will in all likelihood need an element of
subsidy to survive.
5.26 There are a number of factors to explain slow growth. In the
first instance, parents who require OSC will have existing
arrangements and are unlikely to switch providers in the short
term.
5.27 In terms of parents, many women who return to the labour
market when OSC services are available opt to take further
education to improve their skill levels.
In some cases, the
women may take up to five years to work their way through prevocational, vocational and higher education before, possibly,
taking up paid employment. Attempting to assess the benefit to
them or to the wider economy solely on a short-term basis
could provide a misleading picture.
5.28 Assessing impact, therefore, needs to be conducted over both a
medium and long-term timeframe.
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Variables associated with the development and sustainability of
services
5.29 The
costs
of
setting
up
and
providing
OSC
are
not
straightforward and are affected by a range of factors and
variables.
Costs, and pricing policy, will be determined by
factors such as management models, location and services, and
will not necessarily be consistent over time.
5.30 Costs can be broken down into two main categories: capital and
revenue. Examples of the likely costs for a typical OSC service
follow.
Capital costs:
Revenue costs:
 Purchase, upgrade,

refurbishment of premises;
 Purchase of equipment and
premises;

toys;
 Staff recruitment costs;
Rent and rates for
Utility costs e.g. heat,
light, telephone;

Janitorial and cleaner
costs;
 Telephone costs;

 Health and safety related
Staff development and
support costs e.g.
costs, e.g. purchasing fire
training;
extinguishers;
 Initial marketing and

promotion e.g. advertising
Office costs e.g.
stationery, post;
costs, flyers;
 Purchase of transport

Insurance;

Management functions;

Legal and accountancy
where relevant.
costs;

Consumables;
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
Transport costs (where
relevant).
5.31 These costs, however, are not consistent across OSC facilities or
necessarily static or fixed. For example, some OSC clubs are
provided with free school lets, but this is dependent on the
individual local authority. Similarly, the costs of equipment and
staff training will vary, depending on the activities and services
offered and the children cared for; e.g. costs will be higher if
provision is available to children with additional needs, or if a
wider range of activities is offered such as sports or crafts.
5.32 There are a number of variables which can impact on costs and
which must be considered and taken into account when
considering the costs of OSC. The most likely variables are as
follows:

location of premises,
disadvantaged area;
e.g.
rural,

model of provision, e.g. network of childminders, group
care;

management model, e.g. voluntary or paid management;

hours of operation, e.g. before school, after school,
holiday provision;

staff ratios, e.g. for different age groups and activities,
children with additional needs and escorting to and from
school/outings;

type of premises, e.g. school, community buildings,
church halls, private premises;

space per child (across the age groups);
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
specific requirements for children with additional needs
e.g. staff ratios, equipment, adaptations;

local infrastructure and support e.g. local labour market,
free school lets, training provision. Local labour market
conditions are a significant variable since they impact on
the demand for OSC and the supply of OSC. A relatively
buoyant labour market will increase the demand of
childcare in general. However, a relatively low rate of
unemployment will also impact on the numbers of people
entering the childcare sector. This sector has traditionally
been characterised by a low rate of pay and has had
difficulty recruiting and retaining well qualified staff.

policy context: with the establishment of the Care
Commission, OSC will have to adapt to new regulations
relating to ratio of staff to children and space per child. In
addition, providers will have to undertake appropriate
training, all of which will impact on costs and fees.
(Further detail on both fixed and variable costs is provided in
Appendix 4).
5.33 These are visible costs and variables in providing OSC, but it is
also possible to identify a number of ‘hidden’ costs which
impact on the overall costs of OSC. The most obvious of these is
time provided by volunteers, either as staff or as management
committee members.
Displacement and Substitution
5.34 The jobs created via OSC are ‘real’ in the sense that they do not
‘displace’ existing jobs. Previous research undertaken by Blake
Stevenson Ltd (2000) indicates that displacement may occur
when the creation of a service or employment in one area
displaces jobs or services in an other. In that study, there was
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no evidence of OSC displacing other jobs, either in the private
sector or elsewhere. In general, figures on supply and demand
for childcare, which demonstrate that demand consistently
outstrips supply, tend to support the evidence that little
displacement occurs as a result of Out of School Care being
established. Where displacement might occur would be between
two public sector organisations, where one is operating more
efficiently than another.
Recent research carried out by Blake
Stevenson Ltd into varying management models of OSC seems
to indicate that relatively few private sector organisations offer
OSC as a stand-alone service and most offer only a limited
number of places as a loss leader for the parents of pre-school
and school age children.
5.35 Substitution is where a new service results in people switching
to it from a previous service (without there necessarily being a
negative
effect).
There
is
some
evidence
that OSC is
substituting for childminders but overall there is a general
shortage of childminders prepared to take school-age children.
The Cost of Setting Up and Providing OSC: Three Models
5.36 This section of the report provides three illustrative models of
the costs associated with setting up and providing OSC. These
models provide costings for each type of provision, and
highlight the most significant variables that will impact upon
costs, in each case.
5.37 The models represent ‘ideal types’ of OSC provision and are
intended to be illustrative. The models are drawn from a range
of existing research and information, and on the consultants
experience in their work with OSC services. The costings in the
models are, therefore, based on types and levels of expenditure
and income observed in real life examples.
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5.38 Each model represents a ‘snap shot’ of OSC provision at ‘start
up’ point. As detailed in the above discussion, there are a range
variables that will affect costs and benefits, not all of which can
be accounted for in these models. For example, different rates
of occupancy and the fee rates will have significant implications
for the future development of the service.
5.39 Given these variations and in order to consider the range of
provision, it has not been possible to provide totally comparative
models. However, in order to provide a degree of comparability,
each model has been constructed to provide services for the
same number of children, allowing some degree of commonality
across the models.
The costs, in terms of public investment,
can then be calculated for each childcare place.
5.40 The three models are as follows:
Model A:
SIP funded provision in an urban deprived area;
Model B:
Parent-led voluntary group in a rural area;
Model C:
Private provision in an urban area.
Model A: SIP funded provision in an urban deprived area
5.41 Model A is a SIP funded provider of OSC, located in a local
school and operating between the hours of 2.45 p.m. and 6 p.m.
during term time, and providing a full-time service (8 a.m. to 6
p.m.) during eight school holiday weeks across the year. The
service employs three sessional staff.
5.42 The OSC club caters for 20 children during term and holiday
time. The children are aged 5-12 years.
Running costs are
subsidised by SIP funding, resulting in relatively low fees for
parents.
The service actively encourages parents to apply for
Working Families Tax Credit.
5.43 The project contributes to the Scottish Executive’s social
inclusion aims and social justice policy (development of children
and encouraging parents back into work). It might, therefore,
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be anticipated that it would continue to receive some element of
Government subsidy.
5.44 The project generates £13,850 in surplus. However, since the
project receives SIP funding it would be expected that the
amount of funding would be reduced year on year to decrease
SIP contribution and move towards sustainability. Therefore, the
project will need to increase its capacity and generate more of
its own income.
5.45 The annual expenditure and income of the service are as
follows:
Annual Expenditure (Start up and running
Amount £
costs)
Rent
9,000
Replacement/up grading of Equipment and
2,000
Toys
Food and snacks
3,000
Insurance
200
Office overheads
1,500
Utilities
1,000
Staff wages - @ %4.50 per hour x 3
25,000
members of staff plus additional monies
for admin support
Initial staff training
2,000
On-going Training
600
TOTAL
44,300
Income
Annual Grant from SIP
30,000
Childcare Strategy application
2,000
Lottery Funding
14,000
Fees ranging from £13 to £7 per week
term time and £17 - £9 per week holiday
9,880 (term)
2,278 (holiday)
time (figures calculated on maximum fees).
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TOTAL
58,150
SURPLUS
13,850
Model B:
Parent-led voluntary group in a reasonably affluent
rural area
5.46 Model B is located in a rural area, and is run and managed by a
voluntary committee made up of local parents.
The area in
general suffers from a dearth of childcare provision, and parents
have
therefore
set
up
their
own
provision.
The
New
Opportunities Fund was approached to provide assistance with
start-up costs.
5.47 The project operates between the hours of 2 p.m. and 6 p.m.
and provides care for children aged 5-14 years, although the
main service users are aged 5-8 years.
The OSC only runs
during term time.
5.48 The OSC caters for 20 children, thus requiring three workers.
However, only one worker is paid while the others work in a
voluntary capacity. Without voluntary workers, this project would
not be sustainable. An additional £6,840 would have to be found
to pay two workers.
5.49 Since the project was only established recently, many local
parents have existing arrangements such as childminders or
informal care by relatives.
Since this is a rural area, there is
relatively small market for OSC but it remains a vital service for
working parents.
Rural areas, with their low numbers of
potential clients, often do not enjoy the same economies of
scale as urban areas. The project also has additional expenditure
in the form of transport costs to take children from school to the
community hall.
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5.50 In the long term, this project may not be sustainable if it has to
rely on fee income alone. The project does not fall within the
boundaries of a social inclusion partnership and is not,
therefore, eligible for this type of funding.
5.51 There
is
little
or
no
opportunity
for
additional
income
generation, as the management considers that they are currently
charging the maximum fee rate the market will bear.
NOF
funding is only for a maximum of three years but most often
only for one year, after which the service should be selfsustaining.
5.52 The sustainability of the project depends on the long-term
commitment of its management committee and volunteers, and
its ability to generate sufficient income. It is not common for
volunteers to work on a long-term basis.
5.53 The fact that the service is barely able to generate sufficient
funds without NOF funding and its own fund-raising efforts
seems to indicate that some form of long-term subsidy will be
necessary to sustain the service.
Valuable expertise and
experience may be lost if the service has to close, and parents’
ability to go out to work will be compromised.
5.54 The annual expenditure and income for the service is as follows:
Annual Expenditure (Start up and running
Amount £
costs)
Rent @ £5.28 per day 190 days
1,003
Equipment and Toys
2,000
Food and snacks
1,000
Insurance
150
Transport from school to OSC
800
Office overheads
400
Utilities
800
Staff wages @ £4.50 per hour x 1 for 190 days
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Initial staff and volunteer training
2,000
TOTAL
11,573
Annual Income
Grant from NOF
2,000
Fund raising
2,000
Fees @ £13 per week , 190 days
9,880
TOTAL
13,880
SURPLUS
2,307
Model C: Private provision in an urban area
5.55 This OSC is privately run and operates both term time and
holiday times, offering 20 places during each period. The OSC
club is located in a former residential establishment, which is
run as a day nursery.
5.56 The operating hours of the OSC are between 2 p.m. and 6 p.m.
during term time and 8 a.m. to 6 p.m. during school holidays.
OSC is one element of the childcare provided, along with care
for children below school age. The club relies exclusively on fees
for childcare with the exception of benefits from the local
Childcare Partnership for staff training.
5.57 The OSC provision has developed in response to requests from
parents whose younger children use the day nursery. The
overwhelming majority of funds are generated by the day
nursery. The OSC actually generates very little in the way of
profit.
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5.58 The annual expenditure and income of the service is as follows:
Annual Expenditure (Start up and running
Amount £
costs)
Rent/mortgage and council tax
2,400
Equipment and Toys
2,000
Food and snacks
3,000
Insurance
150
Office overheads
400
Utilities
2,000
Staff wages @ £4.50 per hour x 3 staff plus
25,000
monies for admin
Initial staff training
2,000
TOTAL
36,950
Income
Payment from Childcare Partnership for
2,000
staff training
Fees @ £20 per week term time and £40
per week holiday time
15,200 (term)
10,720 (holiday)
TOTAL
27,920
SURPLUS
- 9,030
A Cost/Benefit Analysis of the Three Models
Sustainability
5.59 A cost/benefit analysis of the three models indicates that in
terms of public investment a total of £50,000 has been made
available. Between them, the three projects have generated
seven paid jobs (and two voluntary posts) at an average cost of
just over £7,000 each. The level of public investment is highest
for the SIP project. These figures represent public investment at
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the start up stage. It would be expected that the level of public
investment would be cut as the projects began to make a profit.
Model
Number of
jobs created
Total public
Level of public
and other
investment per
investment
job
A
3
£46,000*
B
1
£2,000**
C
3
£2,000
£15,333
£2000
£666
* includes £14,000 Lottery funding
** NOF funding is not ‘public’ investment as funds come from Lottery
revenue.
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5.60 Model A has had a total of £32,000 public investment (excluding
£14,000 Lottery funding) but in the future the amount of
investment will decrease as the project is expected to become
self-sustaining. However, the SIP funding is substantial and
covers staff wages for the first three years of the project. During
this time, the project is protected and can gradually increase the
number of children cared for. While the amount of investment is
large, the project is more likely to be sustained in the long term.
It remains important that the amount of public funding is
reduced on a gradual basis to allow for the long term
sustainability of the project. It would be expected, however, that
some level of public investment would continue to be required.
5.61 Model B received only £2,000 in public funding from NOF for
start-up costs while providing the same number of OSC places
as Model A. Model B is only sustainable if parents are willing to
act as unpaid volunteers and to continue their fundraising
activities. Since there is little opportunity to increase the number
of children using the service, thus increasing fees, this project
could only employ additional paid staff if it were to attract public
funds.
5.62 Since Model B is not within a social inclusion partnership, one of
the only other funds available is the New Opportunities Funding.
However, NOF funding is only given for one year, in most
circumstances. There is little or no opportunity for this project
to become self-sustaining in its first year.
5.63 Model C has only received £2,000 in public funding as a
contribution for staff training. However, the break down of
income and expenditure indicates that the project actually has a
fee income that does not cover costs. Fees have been set at a
higher rate than either of the two other projects because there is
no other income to off-set these costs.
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5.64 To create this OSC service, the childcare provider has invested
their own money from a surplus generated by their other
childcare activities, namely the nursery. Model C illustrates that
stand-alone private provision is not economically viable, thus
underlining a serious market gap. Arguably, without public
investment, there would be less OSC provision, as there is little
economic incentive for the private sector to provide such a
service.
Cost per OSC place
5.65 Costs per OSC place vary for the three models, with the highest
investment being in Model A. Model B is a relatively low cost
option but this needs to be considered in terms of the
challenges the service faces sustaining itself into the future.
Amount of public
Model
investment per
child
Cost of each
childcare place
Model A
£1,350
£2,215
Model B
£100
£578
Model C
£100
£1,849
Economic benefits of OSC places
5.66 Chapters 3 and 4 have examined the benefits of OSC for
children, parents and communities in great detail. It is not the
consultants' intention to rehearse these arguments again.
However, in the context of these three models the following
varying benefits should be borne in mind.
5.67 Model’s A and B may well provide a service that the private
sector would not. Without this provision, it is arguable that
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parents in Models A and B would face considerable difficulties in
accessing full-time paid work. Therefore, even though Model A
receives £32,000 in public funds, it may well be value for money
in the long term.
5.68 It may be likely that those parents who could afford to pay fees
of £20 plus per week would be able to afford other forms of
childcare if OSC provision were not available. For these reasons,
it would appear that there is a positive economic argument for
public investment in OSC provision.
5.69 It should also be borne in mind that Model A will have ‘added
value’ in the sense that its achievements will assist the SIP in
achieving other social inclusion objectives and targets.
The costs of OSC for parents
5.70 Direct costs to parents are principally in the form of fees,
although many parents may also give their time to fund-raising
and management activities.
5.71 For comparative purposes, the fee rates of the first two projects
have been set at the same level. The costs to parents may differ
according to whether or not parents are eligible for the childcare
element of the Working Families Tax Credit. Weekly term-time
fees for each child in the first two projects are set at £13 per
week. Model C has its fees at £20 per week. Parents are eligible
for up to 70% of childcare costs if claiming Working Families Tax
Credits. In the first two projects, the cost to the public purse
would be £9.10 per week, and £14 per week for Model C.
5.72 The Childcare Information Network produced a survey which
indicated the range of charges to parents.
Some provision,
notably in SIP areas, is heavily subsidised and parents pay
extremely low fees, e.g. 50 pence a session. Elsewhere, charges
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can range from £20 to £30 per week.
Holiday provision can
range from £40 to £60 per week.
5.73 There is less detailed information available about the costs of
OSC than, for example, the cost of nursery and pre-school care.
Fees vary across the UK, but in 2001 the Childcare Commission
(England) estimated that the cost of childcare for a school-age
child was on average between £2,000 to £3,000 a year.
The Cost and Benefits to the Exchequer
5.74 There are three main areas of cost to the Exchequer in terms of
supporting an unemployed parent and helping them get back
into paid employment:



Cost of maintaining a person on welfare benefits/forgone
revenue’;
Cost of childcare tax credits (once previously unemployed
parents have gained access to work);
Cost of Government investment in Childcare.
5.75 The total cost of unemployed people not working is estimated to
be £8.8 billion. The cost per person is £8,572.
5.76 Central Government offers parents and carers tax subsidies to
promote the use of childcare in general and to encourage
parents back into paid work.
The current source of such
subsidies is the childcare element of the Working Families Tax
Credit. The childcare element of the WFTC is paid at the rate of
70p in every pound to a maximum of £135 for one child and
£200 for two or more children.
5.77 Evidence from the Scottish Poverty Information Unit states that
137,000 childcare awards were made in 2001, at an average
cost of £35.46 per claim.
On this basis, the estimated costs
were £485,802. The same report also estimates that only 11%
of WFTC claimants were receiving help with childcare costs and
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that for every one person claiming there were three who were
eligible.
5.78 To calculate the cost of childcare tax subsidises, one needs to
break down the total expenditure by the number of claimants in
order to be able to work out an average cost per household. It
is not possible to estimate the costs, associated specifically with
OSC, therefore, we can not state the cost of subsidising OSC.
5.79 In terms of government investment in Childcare, the following
sources may be identified:





Childcare Strategy Funds12;
Sure Start13;
Business Growth Funds;
SIP funding;
Childcare Tax Credit.
5.80 For example, over £30 million per year is invested in Scotland
through the childcare tax credit. The Scottish Executive recently
announced a further £20 million to help parents into work.
These figures could not be broken down further. Any further
research on the impact of OSC will require a detailed breakdown
of funding.
5.81 To calculate the cost of investment in OSC it would be
appropriate to use the following formula: divide the amount of
investment in OSC by the number of OSC places. The Daycare
Census of 2002 indicates that there were 28,000 OSC places in
January 2002 in addition to an estimated 17,500 children
attending OSC during the holiday period. However, it is not
possible to say how much goes specifically to OSC. In terms of
12
There is no information on the extent to which Childcare Strategy funds are spent
on OSC
13
Sure Start is for 0-3 year olds and is primarily focused on provision for children in
deprived areas
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the Childcare Strategy, funding resources are not earmarked in
any way, with local authorities deciding their own priorities.
The added value of OSC provision
5.82 An important part of this calculation of financial gain is to
compare the added value (additionality) of the provision of OSC
as opposed to cost of welfare to work schemes in terms of their
ability to get parents back to work.
5.83 A calculation scheme already deployed by Blake Stevenson Ltd in
the evaluation of an OSC initiative provides a useful tool with
which to measure value for money and additionality.
5.84 This formula compares the unit cost of welfare to work
programmes (A), and the annual unit cost of OSC provision (B) to
the percentage of participants on each programme gaining
employment (C).
Previous research carried out by Blake
Stevenson indicates that B has higher levels of additionality (i.e.
numbers of people gaining employment) than A.
5.85 In order to calculate the value of OSC, it would be necessary to
compare the cost of additionality between the two types of
programmes
described.
Conclusion
5.86 This chapter has examined three possible ways of estimating the
economic costs and benefits of OSC provision, in terms of the
costs and benefits to the local economy, to parents and to the
Exchequer. Detailed and specific costings are difficult to
calculate for two reasons:
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
there are a wide range of variables that will affect the cost
of developing and sustaining OSC provision;

currently there is no way of estimating the proportion of
investment in childcare that specifically funds OSC.
5.87 Despite these caveats, Blake Stevenson has provided possible
formulae and models that could be used for future research into
the costs and benefits associated with OSC provision.
5.88 The potential costs and benefits of OSC are delicately poised. A
number of key variables, as discussed in 5.13, will have
significant impacts. For example, to be sustainable, OSC
provision will need a high rate of occupancy, will have to charge
a minimum charge for fees, and provide places for between 24
and 30 children.
5.89 It is possible to conclude that OSC provides a wide range of
benefits for relatively low cost. The preceding literature review
and this assessment of costs and benefits indicates that OSC can
realise benefits to the following groups:

Parents: access to paid work, access to training and
further
education
and
less
dependency
on
welfare
benefits;

Employers: improved staff retention, staff less likely to
take time off;

Community: development of employment for working
parents with children; development of jobs in the
childcare sector;

Exchequer: increased revenue in the form of National
Insurance and Income Tax contributions.
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Summary of the Costs of OSC: Measuring the Economic
Impact
The study conducted an analysis of the economic costs and
benefits of OSC provision and provided several examples of
tools to calculate the costs/benefits of OSC. It is not possible,
however, to offer precise monetary figures in all places as OSC
provision
is
not
homogenous
but
varies
in
terms
costs/benefits across a wide range of key variables such as
location and type of provision.
The impact of these variables are some of the most important
determinants on the sustainability of OSC and its ability to
provide high quality childcare which is affordable and
accessible to all parents. The report provided three models as
a possible basis on which to account for these variables. To
calculate the precise costs would require primary research that
was not part of the remit of this study.
The study highlighted the following key points with regards to
the costs/benefits analysis of OSC:

OSC services are both direct and indirect economic
contributors. They offer a direct contribution in the form
of the creation of a small business, the creation of local
employment and financial gains to the local economy as
a whole.

OSC are indirect contributors because of the service they
provide to enable parents to take up paid work or
training.
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
The costs of setting up and providing OSC are not
straightforward and are affected by a range of factors
and variables. For example, costs and pricing policy will
be determined by management models, location, type of
provision and market demand.

There is an additional policy benefit in that OSC services
are
not
only
employing
and
training
unemployed
individuals from economically disadvantaged areas, they
are also enabling parents from disadvantaged areas to
take up employment or training, thereby contributing to
the policy agenda of social justice and social inclusion.
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Summary of the Costs of OSC: Measuring the Economic
Impact (continued)
There are three main areas of cost to the Exchequer in terms
of (a) the cost of maintaining a person on welfare
benefits/forgone revenue, (b) cost of childcare tax credits
(once previously unemployed parents have gained access to
work) and (c) cost of Government investment in Childcare.

Detailed and specific costings are difficult to calculate.

There are a wide range of variables that will effect the
cost of developing and sustaining OSC provision.

Currently, there is no way of estimating the proportion of
investment in childcare that specifically funds OSC.
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6
CONCLUSION
Summary of Findings
6.1
The Scottish Executive commissioned Blake Stevenson Ltd to
conduct an analysis of the costs and benefits of OSC in Scotland.
There were two stages to this analysis: the first to provide a
critical review of the UK and international literature, and the
second to provide an analysis of the economic costs and
benefits associated with OSC provision. Underpinning both
elements of the analysis is the development of a cost/benefits
analysis framework, to assess the economic and social benefits
to parents, children, employers, schools and the community.
6.2
The existing UK and international literature demonstrated that
there is a range of definitions of OSC. It was also apparent that
there is great diversity in the ways in which OSC is delivered and
the ethos informing the type of services provided. The
international literature, for example, demonstrated that there is
a greater emphasis on the educational and academic side of OSC
compared to the UK.
Benefits of OSC
6.3
There is a consensus in the UK and the international literature
that the principal economic benefits of out of school care are in
terms of:

Parents: access to employment, education and training
and associated benefits;

Children: increase in household income;
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
Communities: tackling poverty and disadvantage through
the creation of employment and other opportunities;

6.4
Employers: stability of labour force.
The existing literature identifies the following as the principle
social benefits of out of school care:

Parents: parenting skills and respite care;

Children:

Communities: greater social inclusion, reduction in youth
opportunities
development;
for
learning
and
social
crime and development of citizenship;

Employers: parent workers given peace of mind about
childcare;

Schools and service providers: integration into the
community and development of learning environment.
6.5
This assessment of the benefits of OSC revealed several
weaknesses and gaps in the literature. Overall, there is a lack of
robust evidence to clearly demonstrate many of the benefits of
OSC, without which it is impossible to unequivocally state what
the benefits of OSC are. Much of the literature is characterised
either by assumptions about the benefits or anecdotal evidence.
There is little or no specific evidence of the costs associated with
the provision of OSC. However, the literature does provide some
useful information about the range of factors that will impact on
the costs of OSC.
6.6
However, this review of Out of School Care has identified that in
Scotland and the rest of the UK, there remains a significant level
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of demand for OSC which is currently not met by supply (Blake
Stevenson 2003, forthcoming; DayCare Trust, 2003).
The
evidence shows that OSC brings about both economic and social
benefits and impacts, often to the most disadvantaged areas and
households.
The costs of OSC
6.7
The study conducted an analysis of the economic costs and
benefits of OSC provision and provided several examples of
tools to calculate the costs/benefits of OSC. It is not possible,
however, to offer precise monetary figures in all places as OSC
provision is not homogenous but varies in terms costs/benefits
across a wide range of key variables such as location and type of
provision.
6.8
The impact of these variables are some of the most important
determinants on the sustainability of OSC and its ability to
provide high quality childcare which is affordable and accessible
to all parents. The report provided three models as a possible
basis on which to account for these variables. To calculate the
precise costs would require primary research that was not part
of the remit of this study.
6.9
The study highlighted the following key points with regards to
the costs/benefits analysis of OSC:

OSC services are both direct and indirect economic
contributors. They offer a direct contribution in the form
of the creation of a small business, the creation of local
employment and financial gains to the local economy as a
whole.

OSC are indirect contributors because of the service they
provide to enable parents to take up paid work or training.
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
The costs of setting up and providing OSC are not
straightforward and are affected by a range of factors and
variables. For example, costs and pricing policy will be
determined by management models, location, type of
provision, local infrastructure and support, premises, staff
ratios and market demand.

Detailed and specific costings are difficult to calculate due
to the wide range of variables which will affect the cost of
developing and sustaining OSC provision. Also, there is
currently no way of estimating the proportion of
investment in childcare that specifically funds OSC.

There are three main areas of cost of OSC to the
Exchequer in terms of; (a) the cost of maintaining a
person on welfare benefits/forgone revenue, (b) cost of
childcare tax credits (previously unemployed parents who
have gained access to work), and (c) cost of Government
investment in Childcare.

There is a wider and important social inclusion and social
justice policy benefit where OSC services are employing
and training unemployed individuals from economically
disadvantaged areas as well as enabling parents from
disadvantaged areas to take up employment or training.
Areas for Consideration
6.10 The following section discusses potential areas and issues for
further consideration by the Scottish Executive.
1.
Possible Further Research
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6.11 Given the lack of evidence in many areas, this report has
highlighted the need to conduct research if the precise benefits
and costs of OSC are to be captured. It is recognised that these
are often too expensive and resource-intensive for many
research budgets, however, it is considered worth detailing the
most useful areas and methods for any proposed further
research:

In the first instance, there is a need for longitudinal
studies, as many potential impacts and benefits develop
over longer time periods. For example, positive impacts
on a child’s educational development can only really be
measured in the long-term, whilst a parent gaining access
to training as a result of OSC provision may only reap the
long-term rewards in terms of salary and personal
development after a number of years. Studies, therefore,
should also track change over an extended period.

More comparative studies would be helpful, especially into
the additionality offered by welfare to work schemes as
opposed to the provision of childcare.

Clearer research into specific areas of OSC would add to
the evidence regarding its impacts. It is recognised that
these are often too expensive and resource-intensive for
many research budgets. However, it is worth detailing the
most useful areas for such research would be as follows:
 Evidence-based, rigorous research which demonstrates
both
the
social
and
economic
benefits
of
OSC
provision. There remains a real lack of evidence;
 Research with samples of parents accessing OSC
provision to assess its likely impact of their work
status;
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 Research specifically identifying the costs/benefits of
OSC as opposed to childcare in general;
 Research which takes into account other factors which
may bring about benefits, and which separates these
out to focus solely on the benefits as a result of OSC;
 Finally, future research should also take cognisance of
the differential impact of OSC on sections of the
population. For example, differences in terms of socioeconomic status, location and ethnicity.
2.
Investment in the Local Economy
6.12 The cost/benefit analysis carried out above indicates that
investment in childcare is a valuable tool for economic
development, in terms of job creation in the childcare sector as
well as enabling parents, principally mothers, to return to paid
work.
The actual level of investment is relatively low but the
returns are significant.
These services represent considerable
value for money.
6.13 This indicates the benefits of further sustained investment in
OSC.
While OSC clubs are essentially small businesses and
should be run along business lines, there is an argument for
continued public investment to ensure the sustainability of
services,
because
the
benefits
outweigh
the
return
on
investment.
6.14 The study indicates that it is important, if not essential, that
investment in childcare is seen as a form of economic
investment rather than being marginalised as a social issue.
Without continued investment in this sector and in initiatives like
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the Working Families Tax Credit, women in particular will not be
able to enter paid work or training, and this may have a longterm negative effect on economic growth.
3.
Meeting Policy Targets
6.15 Investment in OSC enables government to meet three sets of
policy targets. These are:

Economic Development;

Social Justice;

Social Inclusion.
6.16 As argued above, sustained investment in OSC will enable
mothers to return to the labour market.
It is important that
policy makers recognise that women occupy a unique place in
the labour market and that childcare responsibilities present one
of the greatest barriers to accessing the labour market. Unlike
men, lack of skills and experience is not the only consideration.
Thus, return to work programmes without a childcare element
may fail to encourage women into the workplace. Evidence has
shown, however, that the provision of OSC has already
encouraged women into training and employment.
6.17 At the policy level, there needs to be a greater acknowledgement
that existing welfare to work strategies are based on a male
model of unemployment and reflect male rather than female
experiences.
Increased recognition of the importance of OSC
would be a significant contribution to this process.
6.18 For parents to access paid work there needs to be consideration
of their childcare needs. Traditional welfare to work programmes
have not sufficiently incorporated these considerations, and
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have tended to be based on a male model, that is to say a model
of a potential employee without childcare responsibilities. There
is a need therefore for Government and employers to recognise
the childcare needs of all parents.
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