New NEG code to follow consultation on free entitlement

From 2010 all local authorities will extend the free offer from 12.5 to 15 hours in early years settings.
From this April more local authorities will be offering places for two-year-olds as the Government starts to roll out places for 15 per cent of the most disadvantaged families in every local authority area.
A DCSF spokesperson said, 'The entitlement will be extended to 15 flexible hours by 2010. To reflect this, we will have new statutory guidance to LAs in place for the universal extended entitlement in April 2010. There will be a consultation process which will be launched in April 2009. This will look at all elements of childcare provision, including childminders and childminder networks.'
The Federation of Small Businesses last week claimed that many nurseries and pre-schools are closing or only just breaking even, and some report a loss of between £1 and £5 per child per session. They want a Government assessment to calculate the impact of the extra hours on providers.
Janet Ward, owner of Holmsdale Nursery School in Ibstock, Leicestershire, said, 'We have to pay business rates, we can't claim back VAT and our costs have gone up. It would be quite difficult if the funding is extended to two-year-olds as well.'
The nursery has highly qualified staff, with several teachers and one Early Years Professional, but Ms Ward says it cannot compete with children's centre salaries.
Leicestershire County Council pays £3.47 per child an hour for 15 hours a week.The council is also trying to claim back NEG funding from the nursery when children have been sick or absent without notice and for what it calls 'persistent absenteeism'.
'It's very arbitrary,' said Ms Ward. 'Our point is, who are they penalising? We're still providing the place and staffing it. They want us to claim funding back from parents.'
Purnima Tanuku, chief executive of the National Day Nurseries Association, said, 'During these difficult times it is crucial that local authorities support providers by not only ensuring a sustainable level of funding is given, but also by ensuring that the system is fair and transparent.'