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Free childcare trials brought forward, PM to announce Free childcare trials brought forward, PM to announce
(35 minutes later)
Trials of a scheme to double free childcare for working parents in England are to be brought forward a year to September 2016.Trials of a scheme to double free childcare for working parents in England are to be brought forward a year to September 2016.
Parents in some areas will be entitled to the extra childcare earlier as pilot schemes are rolled out.Parents in some areas will be entitled to the extra childcare earlier as pilot schemes are rolled out.
The government has also committed to better funding for the free places. The Pre-School Learning Alliance is warning that the system faces "meltdown" if the government does not raise the amount it pays providers.
But the Pre-School Learning Alliance says the system faces "meltdown" if the government does not raise the amount it pays providers. But ministers say they are committed to increasing funding.
The funding review must be "full and thorough", said the charity. Currently, all three and four-year olds in England are entitled to 570 hours of free early education or childcare a year, which works out as 15 hours each week for 38 weeks of the year.
Currently, all three- and four-year olds in England are entitled to 570 hours of free early education or childcare a year, which works out as 15 hours each week for 38 weeks of the year. The Childcare Bill, announced in last week's Queen's Speech, would double this for working parents - although it is not clear yet how many hours they will have to work in order to qualify.
The Childcare Bill, announced in last week's Queen's Speech, would double this for working parents.
Speaking ahead of his announcement, David Cameron said the government was "pressing ahead with these reforms so that not a moment is lost in getting on with the task, going further than ever before to help with childcare costs".Speaking ahead of his announcement, David Cameron said the government was "pressing ahead with these reforms so that not a moment is lost in getting on with the task, going further than ever before to help with childcare costs".
'Crunch time''Crunch time'
But the Pre-School Learning Alliance says the government grant to childcare providers for the existing 15 hours falls, on average, 20% short of the true cost - and the 30-hour plan will see many groups struggling.But the Pre-School Learning Alliance says the government grant to childcare providers for the existing 15 hours falls, on average, 20% short of the true cost - and the 30-hour plan will see many groups struggling.
Research for the alliance suggests private, voluntary and independent groups, which provide 60% of childcare places, could lose up to £661 a year for every three- and four-year-old in the scheme, if the plan goes ahead at current rates. Research for the alliance suggests private, voluntary and independent groups, which provide 60% of childcare places, could lose up to £661 a year for every three and four-year-old in the scheme, if the plan goes ahead at current rates.
The calculations, by specialist research group Ceeda, suggest the total cost to the sector will be approximately £1.95bn per year but funding at current rates totals £1.7bn, a potential shortfall of £250m.The calculations, by specialist research group Ceeda, suggest the total cost to the sector will be approximately £1.95bn per year but funding at current rates totals £1.7bn, a potential shortfall of £250m.
The alliance, which represents 14,000 private, voluntary and independent groups, said many groups were already having to charge parents extra for hours of childcare not included in the scheme, to make ends meet.The alliance, which represents 14,000 private, voluntary and independent groups, said many groups were already having to charge parents extra for hours of childcare not included in the scheme, to make ends meet.
"Extending funded hours without first tacking this shortfall is clearly only going to make a bad situation worse," said chief executive Neil Leitch. "Extending funded hours without first tackling this shortfall is clearly only going to make a bad situation worse," said chief executive Neil Leitch.
"While we of course welcome the drive to improve the availability of childcare in this country, these figures clearly show the government's plan to extend funded childcare hours simply cannot work without a substantial increase in sector funding."While we of course welcome the drive to improve the availability of childcare in this country, these figures clearly show the government's plan to extend funded childcare hours simply cannot work without a substantial increase in sector funding.
"The so-called 'free' childcare scheme is nothing of the sort. For years now, the initiative has been subsidised by providers and parents because of a lack of adequate government funding.""The so-called 'free' childcare scheme is nothing of the sort. For years now, the initiative has been subsidised by providers and parents because of a lack of adequate government funding."
He warned: "I think this is crunch time, I think there will be a meltdown. You will see more and more providers withdrawing from the system and that will undermine and just railroad the entire policy."He warned: "I think this is crunch time, I think there will be a meltdown. You will see more and more providers withdrawing from the system and that will undermine and just railroad the entire policy."
'Stronger economy''Stronger economy'
Linda Symonds, owner of Kidz Kabin nursery in north London, said the shortfall to her business was about 50%.Linda Symonds, owner of Kidz Kabin nursery in north London, said the shortfall to her business was about 50%.
"The way they have put it across to parents is very misleading. The government is pulling wool over all these families' eyes if they tell them this childcare is free."The way they have put it across to parents is very misleading. The government is pulling wool over all these families' eyes if they tell them this childcare is free.
"At the moment we don't even break even on what they pay us. Unless we make some profit we can't invest and pay staff properly.""At the moment we don't even break even on what they pay us. Unless we make some profit we can't invest and pay staff properly."
The government says a formal review into how much childcare providers will be paid for the free hours will be led by children's minister Sam Gyimiah this year. The bill is being introduced to Parliament on Monday and a consultation launched to gather opinions from childcare providers, parents and others on how the policy should work in practice.
The Pre-School Learning Alliance's chief executive Mr Leitch welcomed the news but warned "the devil is in the detail". Employment Minister Priti Patel, who is the leading the task force charged with implementing it, told the BBC: "We are going to be consulting at the outset to ensure that the funding level is right - fair for the providers and also for the taxpayer."
He said the charity was concerned that the government was still significantly underestimating the scale of the shortfall. She added: "We are committed to increasing the funding because we recognise that when you increase the number of free hours the cost will also increase."
Mr Leitch urged ministers to base any increase on facts.
"Simply raising rates by a few pence per hour will do little to address the current situation," he said.
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