Guidance published last week by the DfES sets out the eligibility criteria for private, voluntary and independent sector childcare providers for incentives to recruit graduates and improve the qualifications of non-graduates.
The level of fees that London nurseries can charge has increased to 205 a week, to take account of higher fees, in line with the capital's Childcare Affordability Programme, which subsidises private daycare places with direct funding to providers.
Previously the DfES had said that there would be a national cap at 175 a week, to prevent any impact on affordability (News, 23 February.) In addition, settings in inner and outer London boroughs respectively will receive a London weighting of 3,565.80 and 3,372.30 for the recruitment incentive, and 5,943 and 5,620 for the quality premium.
From next month, nurseries, pre-schools and other sessional providers will be able to access funding for staff to achieve level 3 to level 5 qualifications and disability or SEN training. Childminders are also eligible.
The DfES has asked the Children's Workforce Development Council to report by the summer on 'appropriate strategies and targets' to increase the number of early years workers qualified to at least level 3 by 2008.
From September, full daycare settings will be able to access the 3,000 incentive to recruit graduates and 5,000 to improve the qualifications of non-graduates.
Settings must offer group-based care for longer than four hours a day, with a minimum of 20 registered places and a satisfactory or better Ofsted rating.
Steve Alexander, chief executive of the Pre-School Learning Alliance, said, 'There seem to be some perverse incentives built into the proposals. Some of the premium inducements seem only to apply to full daycare.'
This seemed to run counter to the action plan's message that parental demand and choice should drive the supply of services, he said.
Purnima Tanuku, chief executive of the National Day Nurseries Association, said she questioned how day nurseries would 'retain staff and sustain the cost of increased wages for higher qualified staff when the funding ends, especially in the light of recent rises in the minimum wage'.
Guidance on monitoring the Transformation Fund will follow in April and a leaflet for early years providers is due later in the spring. The Transformation Fund Guidance is at www.everychildmatters.gov.uk.
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