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Doubling of free childcare 'could force nurseries to close' | Doubling of free childcare 'could force nurseries to close' |
(10 days later) | |
Nearly 750 childcare providers say they fear being put out of business by government plans to double free hours, says the Pre-school Learning Alliance. | Nearly 750 childcare providers say they fear being put out of business by government plans to double free hours, says the Pre-school Learning Alliance. |
In 2017, free care for three-and four-year-olds in England will rise from 15 to 30 hours in each term-time week. | |
But childcare providers say the scheme is underfunded, and 49% of 1,500 who chose to respond to an online survey said they could be forced to close. | But childcare providers say the scheme is underfunded, and 49% of 1,500 who chose to respond to an online survey said they could be forced to close. |
Ministers say many providers are keen to take part in the scheme. | Ministers say many providers are keen to take part in the scheme. |
The Pre-School Learning Alliance sent out an online questionnaire to members last month. | The Pre-School Learning Alliance sent out an online questionnaire to members last month. |
Of almost 1,500 who replied: | Of almost 1,500 who replied: |
Almost all the respondents (98%) said they were already offering the 15 hours of free childcare, but only a third said they would definitely offer the 30 hours, with 19% saying they definitely would not and a further 51% unsure. | Almost all the respondents (98%) said they were already offering the 15 hours of free childcare, but only a third said they would definitely offer the 30 hours, with 19% saying they definitely would not and a further 51% unsure. |
Local authorities are responsible for ensuring there is enough nursery provision, but a National Audit Office report last month warned councils might struggle to find providers willing to offer the 30 free hours for all eligible children. | Local authorities are responsible for ensuring there is enough nursery provision, but a National Audit Office report last month warned councils might struggle to find providers willing to offer the 30 free hours for all eligible children. |
The report also highlighted childcare providers' concerns about funding levels. | The report also highlighted childcare providers' concerns about funding levels. |
"Though they are keen to offer the new entitlement, some providers may choose not to if the funding is not right," it said. | "Though they are keen to offer the new entitlement, some providers may choose not to if the funding is not right," it said. |
"There is also a risk that childcare settings could choose to offer additional hours to three- and four-year-olds by reducing the number of disadvantaged two-year-olds they look after, as two-year-olds are more expensive to care for." | "There is also a risk that childcare settings could choose to offer additional hours to three- and four-year-olds by reducing the number of disadvantaged two-year-olds they look after, as two-year-olds are more expensive to care for." |
The survey findings have been published as MPs prepare to discuss the issue at the Public Accounts Committee. | The survey findings have been published as MPs prepare to discuss the issue at the Public Accounts Committee. |
"These figures are a stark warning of what could happen if the government insists on rolling out an underfunded, under-resourced free entitlement offer," said Pre-school Learning Alliance chief executive Neil Leitch. | "These figures are a stark warning of what could happen if the government insists on rolling out an underfunded, under-resourced free entitlement offer," said Pre-school Learning Alliance chief executive Neil Leitch. |
"Given that the move to 30 hours means that most providers will no longer be able to cross-subsidise in order to plug this gap, it's no surprise that so many are fearing for their future. | "Given that the move to 30 hours means that most providers will no longer be able to cross-subsidise in order to plug this gap, it's no surprise that so many are fearing for their future. |
Mr Leitch said the government could not expect providers to put the sustainability of their business "at risk" to fulfil a promise that "wasn't properly thought through". | Mr Leitch said the government could not expect providers to put the sustainability of their business "at risk" to fulfil a promise that "wasn't properly thought through". |
'First step' | 'First step' |
He welcomed government plans to boost the average hourly rates paid to providers for this age group to £4.88 as "an important first step" but added that cost pressures, such as the introduction of the national living wage, would still leave "a significant funding gap". | He welcomed government plans to boost the average hourly rates paid to providers for this age group to £4.88 as "an important first step" but added that cost pressures, such as the introduction of the national living wage, would still leave "a significant funding gap". |
Ministers say the concerns raised by the survey do not match what they are seeing on the ground, with "huge levels of interest" in helping trial the scheme. | Ministers say the concerns raised by the survey do not match what they are seeing on the ground, with "huge levels of interest" in helping trial the scheme. |
A Department for Education spokeswoman said the government would be spending "£6bn a year by the end of this parliament, to make sure more families than ever before have help with their childcare needs". | A Department for Education spokeswoman said the government would be spending "£6bn a year by the end of this parliament, to make sure more families than ever before have help with their childcare needs". |
The spokeswoman said the government would raise average funding after extensive consultation and "the most comprehensive analysis of this market ever". | The spokeswoman said the government would raise average funding after extensive consultation and "the most comprehensive analysis of this market ever". |
"We will also be consulting on fairer funding allocations, including the introduction of an early-years national funding formula, and making sure more money reaches the front line instead of being top-sliced by councils," she added. | "We will also be consulting on fairer funding allocations, including the introduction of an early-years national funding formula, and making sure more money reaches the front line instead of being top-sliced by councils," she added. |
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