Private nursery providers, particularly in London and the south-east, have for some time felt short-changed by the Government's failure to adequately fund free nursery education for three- and four-year-olds. But, while not sanctioned under the Government's code of practice, they have cushioned the financial blow to their nursery businesses by simply reimbursing parents the amount they received in the form of nursery education grant (NEG) from their local authority.
However, now the Government is insisting in a revised code of practice that parents must not be asked directly, or indirectly, to top up fees and that settings must be able to increase provision of nursery education from 33 to 38 weeks. Nursery owners are up in arms over the proposals, with one Brighton provider warning that because 84 children are receiving NEG at her nursery, the shortfall in funding could mean losses of up to 53,000 in a year (see box).
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