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Authorities test out new childcare market role

Local authorities should be discouraged from initiatives that 'second-guess' the childcare market, 'prop up unsustainable providers or distort competition', according to an assessment of the Childcare Implementation Project. The report by Robert Hill and Carey Oppenheim of Robert Hill Consulting examined the experiences and reactions of the 12 local authorities who took part in the year-long project.
Local authorities should be discouraged from initiatives that 'second-guess' the childcare market, 'prop up unsustainable providers or distort competition', according to an assessment of the Childcare Implementation Project.

The report by Robert Hill and Carey Oppenheim of Robert Hill Consulting examined the experiences and reactions of the 12 local authorities who took part in the year-long project.

The authorities were piloting approaches to a range of issues such as managing the childcare market, the extension of the flexible entitlement to free nursery education for three- and four-year-olds, development of children's centres and the childcare workforce.

The report stressed that 'the limits as well as the potential of local authorities' market management role need to be acknowledged'. It added that the DfES 'should note that authorities will need a clear steer or a set of criteria on how they should interpret "reasonably practicable" in terms of what it means to deliver sufficiency of childcare'.

The DfES and local authorities must work together to ensure funds for nursery education are provided 'transparently and equitably between maintained and PVI sectors', the report said. In the short term this will be for councils to undertake 'in accordance with the code of practice'.

However, the report added that in the long term there 'could be a case for moving to a national/regional rate', but it stressed that the implications of having 'different labour market rates' across the country would have to be carefully examined.

The report found that the authorities, who had received no extra funding for taking part in the project and provided staff and resources at their own expense, had welcomed the 'real and meaningful policy interaction' with DfES officials, and this 'generated a huge fund of goodwill,' the report stated.

Details are available at www.everychildmatters.gov.uk/earlyyears/implementation