Nursery World - Analysis: Ofsted registration - Passing the costs on to providers

With the cost of registering as a childcarer set to soar in new plans by Ofsted, will providers be able to stay in business while charging fees that parents can afford? Laura Marcus considers the outlook across the sector

Childcare providers are facing massive rises in Ofsted fees as the Government plans for a new banded fees system which will ease their subsidising of the service.

A new DCSF consultation published on 21 November, 'Childcare Act 2006: Future Approach to Fees and Subsidies', proposes major rises in registration and annual Ofsted fees over the next three years. It sets out a shift in the Government's policy of subsidising regulation, with providers being expected to pay the equivalent of nearly 25 per cent of Ofsted's service costs in 2010 under 'a fairer, simplified fees system'.

The hike-up will be kept to a minimum in 2008 and 2009 'in recognition of the changes the sector is going through as new provision and duties are implemented'. As the document says, 'from 2010 the consultation is proposing a more significant reduction in the subsidy, with corresponding additional funding being transferred to local authorities to administer support at a local level'. This local-level support is intended so that 'subsidies are directed at those who need them'.

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