From October, the Government wants to introduce new regulations to increase the level of charges. Under plans put out for consultation, the daycare application fee would rise from 121 to 150 and the annual fee for providers would go up from 94 to 120. Childminders would pay 18 to register, up from 14, and their annual fee would rise from 11 to 14.
There has been no increase to the fees, which are heavily subsidised by the Government, since 2001.
The consultation asks for views but says that it recommends a phased approach with increases of 30 per cent. In the longer term, and subject to further consultation, it suggests that local authorities take on more of a role in determining subsidies locally.
Purnima Tanuku, chief executive of the National Day Nurseries Association, said the private and voluntary sector was already operating 'within tight margins'.
She added that the phased approach could 'lead to providers being forced to bear the whole cost of registration fees, leaving them with less to spend on investing in staff training and quality assurance schemes. The principle of a large subsidy for day nurseries should remain permanently.'
Liz Bayram, chief executive of the National Childminding Association, said the cost could be a barrier to people entering the childcare workforce.
'This is why the subsidy is so important and why we would urge caution over proposals to devolve responsibility for its administration to local authorities,' she said.
Ms Bayram called for the Government to examine how the subsidy could be ring-fenced for different types of daycare providers and to pilot the plans first.
The consultation ends on 29 May and is at www.dfes.gov.uk.
