Warning over cost of free childcare
SOCIETY: Nurseries are faced with “huge challenges” following the introduction of a free 30-hours childcare scheme, a report has warned, with one in five expected to make a loss.
The Government initiative, means working families of three and four-year-olds in England are entitled to 30 hours of childcare a week.
NURSERIES ARE faced with “huge challenges” following the introduction of a free 30-hours childcare scheme, a report has warned, with nearly one in five expected to make a loss.
The Government initiative, rolled out last September, means working families of three and four-year-olds in England are entitled to 30 hours of childcare a week and has been widely welcomed by parents.
But a survey of 709 nurseries, from the National Day Nurseries Association (NDNA), has found many are struggling with growing deficits, with closures rising 47 per cent since the scheme began.
Purnima Tanuku, chief executive of the NDNA, said the Government must wake up to the cost of its ‘free’ scheme, with nurseries now restricting places, changing the way they deliver funded hours, and holding back from hiring highly qualified staff.
“By not adequately funding this policy, government is putting children’s life chances at risk,” she warns, describing it as a “terrible state of affairs”.
According to the NDNA, the gap between the cost of delivering the free childcare and the funding nurseries receive from local authorities has risen to an average of £2,166 per year per child.
Among those who have spoken out is Anita Anderson, owner of Happy Kidz nursery in Hull, which cares for 165 children.
The nursery receives significantly less funding for its ‘free’ children than the others it looks after, she says, meaning it has to raise the price of extras like nappies, lunch and trips.
“It is good for parents, but we are subsidising the costs,” she said, calling for funding to go direct to nurseries. “The whole system needs a full review. We need help and support, we need to be funded adequately, and the paperwork must be reduced.”
In York, one of the first areas to trial the scheme, providers say it has been a huge boon for parents.
Lesley Calvert, manager of Funfishers, said: “It’s such a huge positive for parents. The 30 hours helps them to fund childcare so they can go back to work, or do more hours. It’s a fantastic difference for parents.”
The Department for Education, noting that the poll was based on a small number of the 45,000 providers in England, said its own research showed 80 per cent were willing and able to offer places under the scheme.
Children and Families Minister Nadhim Zahawi said the 30hour free childcare policy was benefiting almost 300,000 children. He said: “That means thousands of hard-working parents are saving an average of £5,000 a year on childcare.
“Our research has shown that more than 80 per cent of providers are willing and able to offer places under this programme, with a third saying that had managed to increase the number of places available and 40 per cent able to increase staffing hours.”