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Nurseries charging for free places

Many nurseries are still charging top-up fees to parents using free places for three- and four-year-olds, according to Government research.

An evaluation into how 19 local authority pathfinder areas aredelivering the extended 15-hour flexible entitlement revealed 'a smallnumber of examples' where it was unclear whether guidance - which statesthat parents cannot be charged for any part of the entitlement, eitherindirectly or directly - was being followed.

The report concludes that the DCSF 'reinforces and clarifies the Code ofPractice principles on top-up fees to local authorities and providerswhen the revised Code is published in September 2010'.

A spokesperson for the DCSF said, 'We have made it very clear to localauthorities that top-up fees linked to delivery of the free entitlementare completely unacceptable. The free entitlement is designed to offeraccessible, high- quality childcare to benefit all families. Parents andcarers should not be expected to top-up something that was created to beuniversally free.'

A 20 per cent 'uplift' in early years funding was given to thepathfinder authorities and could be passed on to providers to help themdeliver the 15 hours flexibly.

This was in the form of 'enhanced hourly funding rates' for some or allof the hours, coupled with one-off grants for equipment, for example.Hourly rates and the way uplift funding was passed on varied.

Providers gave 'mixed' reactions when the entitlement was firstintroduced, says the report.

Local authorities found that many private providers, already unhappyabout rates for 12.5 hours, did not want to deliver extra hours.

Some authorities said some private nurseries had refused to participateor pulled out completely.

Although the EYFS has removed the distinction between 'care' and 'earlyyears education', the study found there was 'tension and lack ofclarity' among providers 'as to whether the new entitlement shouldcomprise primarily early years education, childcare provision or amixture of both'.

Although 40 per cent of providers offered provision between 4pm and 6pm,not all of them allowed parents to take up free places during this timebecause some providers, particularly those in the maintained sector, sawthis time period as 'childcare', not 'early years education', the reportsaid. It recommends the DCSF issue guidance that early years learningand care can be funded through the entitlement.

The National Day Nurseries Association said it was not surprised thereport highlighted problems around funding. Chief executive PurnimaTanuku said, 'With many providers struggling to deliver 2.5-hoursessions on existing levels and in some cases actually subsidising thisoffer, nurseries are concerned about what will happen once they areinvolved in the flexible entitlement.'

She added that some pilot providers raised issues about funding in yeartwo of the pilots after the 20 per cent in uplift funding ended.

'Enhanced funding is not available for the wider roll-out and wequestion what will happen if providers do need extra help to deliverincreased flexibility.'

REPORT RECOMMENDATIONS

- Provide a checklist for local authorities to help assess providers'suitability to deliver the new offer. Factors to consider could bewhether settings have accessible outdoor space with a variety ofsurfaces and resources

- Extra funding available to roll out the pathfinder nationally. Couldbe linked to providers' suitability to deliver the extended offer withfunding available

- DCSF could research how children's outcomes are linked to flexibleattendance at more than one provider to help LAs understand more aboutthe impact on children of extended and flexible provision andtransitions for children using more than one provider

- DCSF should reinforce that EYFS makes no distinction between'childcare' and 'early years education'

- Target marketing of free entitlement in deprived areas