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Free childcare trials brought forward, PM to announce Childcare system 'facing meltdown due to underfunding'
(about 1 hour later)
Trials of a scheme to double the 570 hours of free childcare a year three and four-year-olds get in England are to be brought forward to 2016. The childcare system in England is at "breaking point" due to underfunding and a plan to double free provision could send it into "meltdown".
Working parents in some areas will be entitled to the extra help when pilots begin in September next year. That warning - from industry body the Pre-School Learning Alliance - comes as ministers say trials of the new scheme are being brought forward to 2016.
The Pre-School Learning Alliance is warning that the system faces "meltdown" if the government does not raise the amount it pays providers. It will double the entitlement for working parents of three and four-year-olds from the current 570 hours a year.
But ministers say they are committed to increasing funding. The government says it is committed to increasing funding.
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 with a household income of less than £150,000 - 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 with a household income of less than £150,000 - although it is not clear yet how many hours they will have to work in order to qualify.
The change had been due to come into force from September 2017, but David Cameron said the government was speeding up that timetable "so that not a moment is lost in getting on with the task". The change had been due to come into force from September 2017, but some working parents will be entitled to the extra help when pilots begin in September next year.
'Breaking point''Breaking point'
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 struggle. However, the Pre-School Learning Alliance - which represents 14,000 private, voluntary and independent groups - says the government grant to childcare providers for the existing 15 hours falls, on average, 20% short of the true cost.
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. A study by specialist research group Ceeda for the alliance suggests providers 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 alliance 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. "I think this is crunch time, I think there will be a meltdown," 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 we are at breaking point with just the 15 hours. Extend that to 30 and you will see a different position altogether. He continued: "I think we are at breaking point with just the 15 hours. Extend that to 30 and you will see a different position altogether.
"There are many nurseries that can't physically extend their number of hours. They may operate in a church hall or community centre. Nobody has considered whether in fact they will be able to offer the 30 hours.""There are many nurseries that can't physically extend their number of hours. They may operate in a church hall or community centre. Nobody has considered whether in fact they will be able to offer the 30 hours."
'Fair funding''Fair funding'
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 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 bill is being introduced to Parliament on Monday and a consultation launched on how the policy should work in practice.
Following its announcement in the Conservative manifesto, the cost to the Treasury was estimated at £350 million a year, but Employment Minister Priti Patel told the BBC the sums involved were yet to be finalised. The cost to the Treasury was initially estimated at £350 million a year, but Employment Minister Priti Patel told the BBC the sums involved were yet to be finalised.
Ms Patel, who is the leading the task force charged with implementing the plans, said: "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.Ms Patel, who is the leading the task force charged with implementing the plans, said: "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.
"We are committed to increasing the funding because we recognise that when you increase the number of free hours the cost will also increase." "We know that funding rates need to increase."
Asked why households with a relatively high income would receive help, she added: "This isn't about subsidising well-off people at all. This is about providing affordable childcare and increasing childcare provision for working families."Asked why households with a relatively high income would receive help, she added: "This isn't about subsidising well-off people at all. This is about providing affordable childcare and increasing childcare provision for working families."
Ministers say up to 600,000 families could benefit, saving as much as £5,000 a year.Ministers say up to 600,000 families could benefit, saving as much as £5,000 a year.
In Scotland, three and four-year-olds are entitled to up to 600 hours of free early years education or childcare a year, while in Wales, provision is for a minimum of 10 hours a week.In Scotland, three and four-year-olds are entitled to up to 600 hours of free early years education or childcare a year, while in Wales, provision is for a minimum of 10 hours a week.
In Northern Ireland, it is limited to four-year-olds only, for up to 12.5 hours a week.In Northern Ireland, it is limited to four-year-olds only, for up to 12.5 hours a week.
What is your reaction to the doubling of free childcare? You can email haveyoursay@bbc.co.uk.What is your reaction to the doubling of free childcare? You can email haveyoursay@bbc.co.uk.
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