The publication of the new Code of Practice last week appears to have confirmed many private and voluntary providers' worst nightmares. It has clearly aroused anger among many nurseries, particularly pre-schools and small operators, who do not have the buffer of being part of a large nursery chain.
While the DCSF continues to insist that there should be enough money in the system for private and voluntary settings to offer the free funded places for three-and four-year-olds and cover their costs, many providers say they have been losing money on the free places for years.
The latest version of the Code has infuriated those settings who fear that with the extension of the entitlement to a flexible 15 hours, the rules are now so restrictive that there is no longer any room to make up any funding shortfalls.
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