Childcare programme blamed for shutdown
ANURSERY has blamed the government’s free childcare programme for causing it to close – sparking fears more than a dozen others could follow.
Bright Beginnings based in Adswood, Stockport – which was rated ‘outstanding’ by Ofsted – will shut on August 24.
It employs 15 staff and looks after 75 children.
Directors say the 30 ‘funded for free’ hours introduced nationally for working parents has meant a large drop in revenue.
This has been made worse, they claim, by Stockport council electing to keep back five per cent of the government cash it gets to help nurseries deal with the free hours. This is the maximum a local authority is allowed to withhold.
According to the Stockport Preschool Provider Network (SSP) there are another 14 pre-schools or nurseries worried about their future viability for the same reasons.
Kevin Jebson, chairman of Bright Beginnings, on Garners Lane, said: “Over the last 18 months we have been challenged by providing the ‘ funded for free’ hours the government has introduced.
“This saw a massive decrease in the amount per hour paid that we received from the council to cover this cost. From April the figure was reduced again as Stockport council chose to maximise the five per cent it can deduct from the payment.
“The reality is we cannot provide outstanding nursery care on the funding provided. Our staff are highlyqualified and work very hard providing care to your children – none are paid a fortune.
“We appreciate this is awful news, but we had no choice. We would not want to see staff bear the main cost of this flawed government policy.”
Other factors cited were an increase in the living wage, higher pension contributions, rent and a hike in business rates.
Diane Coffey, who stood in last month’s council elections as Stockport’s first candidate for the Women’s Equality Party, campaigned on this issue. She said: “I would not be surprised if this is a trend and there are others that close. The lack of adequate financial provision to support the promised ‘free 30 hours’ can affect all nursery users.”
An SSP spokesman said: “It is not unique, Stockport has 14 more preschools/ nurseries worried about viability.”
The policy entitles parents who work 16 hours or more at the minimum wage or higher 30 free hours of care for children aged three or four. The figure is 15 hours if the child is aged two.
A Department for Education spokesman said: “We are spending more than any other government on childcare – including £1bn every year to deliver 30 hours of free childcare.”