The Royal Foundation Business Taskforce for Early Childhood has published a new report that highlights the financial benefits to investing in the early years sector.

The report, ‘Prioritising early childhood for a happier, healthier society’ was produced by Deloitte on behalf of the Taskforce and sets out how a greater focus on early childhood would support a more productive and sustainable workforce landscape.

Since the inception of the Taskforce in 2023 its membership has grown to include businesses such as Aviva, The Co-operative Group, Deloitte, Iceland Foods, IKEA UK and Ireland, The LEGO Group, NatWest Group and Unilever UK. They have collectively worked together to boost the role businesses can play in supporting the sector.

Alongside the report, the Taskforce members have committed to taking action on the issue and several have announced new initiatives as part of the first tranche of action. These include The Co-operative Group creating a specific early childhood fund as part of its unique apprenticeship levy share scheme, and committing to raise £5 million over the next 5 years, creating more than 600 apprenticeships. Business Taskforce members, NatWest Group, Unilever UK, Ikea UK and Ireland, and Iceland Foods have joined The Co-op in sharing a combined £1million over the next 12 months.

The report details how investing in early years could generate at least £45.5bn in value added for the national economy each year. It goes on to claim to state that this includes £12.2bn from equipping people with improved social and emotional skills in early childhood, £16.1bn from reducing the need to spend public funds on remedial steps for adverse childhood experiences and £17.2bn from supporting parents and caregivers of under-fives who work.

You will also be able to access a new business-focused area on The Centre for Early Childhood’s website containing practical information and resources.

 The report identifies five areas in which businesses of all sizes can play their part in delivering the greatest impact for children under five, the adults around them, and the wider society:

• Building a culture that prioritises early childhood within businesses, local communities, and wider society
• Helping families facing the greatest challenges access the basic support and essentials they need
• Offering parents and carers greater support, resources, choice, and flexibility with their work
• Prioritising and nurturing social and emotional skills in young children and the adults in their lives
• Supporting initiatives which increase access to quality, affordable and reliable early childhood education and care.

Christian Guy, executive director of The Royal Foundation Centre for Early Childhood said:

“Some of the most significant businesses in Britain have joined forces to deliver a major rallying call to their fellow business leaders to prioritise young children and those who care for them – for the good of our society and economy.

“Whether it is helping families access the support they need, prioritising the social and emotional well-being of children and the adults in their lives, or building a culture that prioritises early childhood, business has a significant part to play.

Commenting, Neil Leitch chief executive of the Early Years Alliance, said:

“We welcome today’s report from the Royal Foundation Business Taskforce which further proves that investing in the early years is not just incredibly beneficial for the children who use it but for wider society.

“For far too long, early education has been dismissed as childcare and educators as simply babysitters. It is therefore extremely positive to see the businesses in this taskforce come together and highlight just how far reaching the benefits of early education truly are.  

“On top of this, we welcome the initial steps that businesses within the taskforce have taken to ensure that early education is prioritised both within the workplace and the economy and we hope it inspires others to follow suit.   

“At a time when the sector is already in the spotlight, we hope that this report will not only give ministers real pause for thought, but also act as a reminder that the benefits highlighted by the taskforce cannot come close to being realised without funding that reflects the cost of delivering high-quality early education, both now and in the future.” 

Purnima Tanuku OBE, chief executive of National Day Nurseries Association (NDNA) said: “Early education and care is foundational to children’s lives but also working families and our long-term economy. So we are delighted that the Royal Foundation has got so many employers and organisations on board to emphasise and prioritise the crucial nature of early childhood.

“High quality early education and care can really boost all children’s learning and give them the best start in life, especially those from more disadvantaged backgrounds where we know it can go a long way to closing the attainment gap. For this to happen, childcare providers across the UK need support to remain sustainable in the face of government underfunding and a long-standing recruitment crisis.

“Measures in the report show some innovative approaches to supporting the sector from big employers and companies such as NatWest and Co-Operative including apprenticeship levy contributions that could help to bolster the workforce who are instrumental in educating and supporting the development of our youngest children.”