Lancashire Council has written to early years settings at the start of the Easter holiday informing them of the policy change, which it says is being implemented in line with the Childcare Act 2006.
However, the Department for Education has now waded into the debate.
A spokesperson told Nursery World, ‘The Department is clear that funding for the free entitlements to early education for two-, three- and four-year-olds cannot be claimed by or spent on individual childminders providing childcare for related children, even if they are in receipt of funding for other children.
‘However, it is not the Department’s intention that this should apply to children related to members of staff in group settings, such as pre-schools or nurseries.’
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