What is to be done about the tax credit system, and the fraud and error that is resulting in losses and overpayments running into billions of pounds (see News, page 4)?
Abuse of the childcare element of tax credits is causing nurseries and childminders major problems. We spoke to one nursery owner who has £20,000 of debts. It still seems all too easy for people to sign up to a childcare provider, get the registration number, claim the credits, spend the money and disappear, owing significant amounts of childcare fees.
Daycare providers have long asked for the money to go direct to them, but supply-side funding is still largely a political no-no.
The other side of the coin is that take-up of the childcare element of tax credit is low, with some honest families frightened that they will run into financial trouble when overpayments are clawed back. Others don't know that they could get help or how to go about it.
The system needs to be simplified, and supply-side funding should be re-examined, because the current situation is causing difficulties for parents and providers.
Nursery food
This week, the School Food Trust has been give an extra £21m to improve school food, but there is still no move to support early years providers - the most important time of all for educating children's palates (see News, page 6). Organix and the Soil Association are putting together a major report on nursery food and the need for regulations and guidelines. Get in touch with them if you'd like to share your experiences (joanna.quinn@organix.com).
