Knowsley Council on Merseyside told Lorraine Moorcroft that the Hunts Cross facility she opened in Halewood last year would not qualify for the nursery education grant. She already operates the grant at another nursery in Knowsley and one at Huyton in Liverpool.
A spokeswoman for the Department for Education and Skills said, 'Knowsley LEA have a legal duty to provide a free place to all three- and four-year-olds in their area. The LEA is operating against our guidance, which clearly states that they should not refuse funding to providers on the grounds that there is already sufficient provision in the area.
'We have told the LEA that we are not happy with their current decision, and discussions are continuing.'
The DfES guidance is contained in Paragraph 79 of its code of practice on the provision of free nursery education for three- and four-year-olds 2004-05, which came into force on 1 April. A spokeswoman for Knowsley Borough Council acknowledged that the authority's decision was 'contrary to guidelines from the DfES', but said the council was carrying out an audit and review of childcare in the borough.
She added that Mrs Moorcroft was the private sector representative on the local Early Years Development and Childcare Partnership and that she had attended meetings where the issue was discussed and was aware of the council's decision.
But Mrs Moorcroft said, 'I would never have gone ahead and opened a nursery pretending that I didn't know or understand the council decision. I don't think they should have made an assumption that because I was on the EYDCP I should have a full working knowledge of all its decisions, especially as I have only a casual role on it.'
However, the council spokeswoman said the document was 'guidance' and that Knowsley was not under any statutory obligation to adhere strictly to it.
But the DfES spokeswoman said Knowsley LEA was also ignoring Paragraph 8 of the code of practice, which explained that 'local authorities must have regard to any guidance given from time to time by the secretary of state'.
Mrs Moorcroft has vowed 'to fight this all the way'. She said, 'I think it's ludicrous for the Government to give out a glossy document to every provider stating the guidelines that should be followed, only for an authority to ignore them.
'The parents here feel they are having choice denied them. It's ridiculous for a working parent to use the two-and-a-half hours in the maintained sector nursery when they may work from 8am to 5pm and need the extra hours of childcare.'
Mrs Moorcroft said that when she was buying the property in Halewood to open her third nursery she sought the advice of both EYDCP and Ofsted officials and was never given any inkling of a change in council policy.
Mrs Moorcroft said, 'At a later meeting with the deputy director of education and the chairman of the EYDCP it was confirmed that because of surplus places in the maintained sector Knowsley council was not going to allow new settings to administer the grant. That's when the bombshell really hit me.'
The council spokeswoman said 14 nurseries in the borough currently administer the grant, and three nurseries have been told they cannot do so.
She claimed she was told that if she had accepted an earlier offer from the EYDCP to help with filling in a form from Ofsted, she would then have been informed of the position. But she declined the offer of help because, as a deputy headteacher, she felt confident to do it herself.
It was only in late October 2003 that a member of the EYDCP 'casually remarked that the nursery education grant would not apply to my new nursery,' she added.
A private daycare provider in Lancashire has been prevented from administering the nursery education grant at her new nursery because the local council wants three- and four-year-olds to take up surplus places in the maintained sector.
Knowsley Council on Merseyside told Lorraine Moorcroft that the Hunts Cross facility she opened in Halewood last year would not qualify for the nursery education grant. She already operates the grant at another nursery in Knowsley and one at Huyton in Liverpool.
A spokeswoman for Knowsley Borough Council acknowledged that the authority's decision was 'contrary to guidelines from the Department for Education and Skills', but said the council believed a review of these arrangements was underway. She added that Mrs Moorcroft was the private sector representative on the local Early Years Development and Childcare Partnership (EYDCP) and that she had attended meetings where the issue was discussed and that she was aware of the council's decision.
But Mrs Moorcroft said, 'I would never have gone ahead and opened a nursery pretending that I didn't know or understand the council decision. I don't think they should have made an assumption that because I was on the EYDCP I should have a full working knowledge of all its decisions, especially as I have only a casual role on it.'
The DfES guidance is contained in its code of practice on the provision of free nursery education for three and four year olds 2004-05, which came into force on 1 April. Paragraph 79 states, 'Providers should be rejected only because they are unable to meet the conditions that apply in their area. They should not be rejected on the grounds that there is already sufficient provision in the area.'
However, the council spokeswoman said the document was 'guidance' and that Knowsley was not under any statutory obligation to adhere strictly to it.
But the code of practice refers to Section 153 of the Education Act 2002, which says that 'local authorities must have regard to any guidance given from time to time by the secretary of state'.
Mrs Moorcroft, who said she had secured support from some DfES officials, has vowed 'to fight this all the way'. She said, 'I think it's ludicrous for the Government to give out a glossy document to every provider stating the guidelines that should be followed only for an authority to ignore them.
'The parents here feel they are having choice denied them. It's ridiculous for a working parent to use the two-and-a-half hours in the maintained sector nursery when they may work from 8am to 5pm and need the extra hours of childcare. I feel the parents are entitled to that money.'
Mrs Moorcroft said that when she was buying the property in Halewood to open her third nursery she sought the advice of both EYDCP and Ofsted officials and was never given any inkling of a change in council policy. It was only in late October 2003 that a member of the EYDCP 'casually remarked that the nursery education grant would not apply to my new nursery,' she added.
Mrs Moorcroft said, 'At a later meeting with the deputy director of education and the chairman of the EYDCP it was confirmed that because of surplus places in the maintained sector Knowsley council was not going to allow new settings to administer the grant. That's when the bombshell really hit me.'
She claimed she was told that if she had accepted an earlier offer from the EYDCP to help with filling in a form from Ofsted, she would then have been informed of the position. But she declined the offer of help because, as a deputy headteacher, she felt confident to do it herself.
The council spokeswoman said 14 nurseries in the borough currently administer the grant, and three nurseries have been told they cannot do so.
