Nursery World - Funding dilemma for NNI settings

Neighbourhood nurseries need 'continued ongoing funding' if they are to survive in the wake of next year's subsidy withdrawal, according to the largest voluntary provider of the initiative. Steve Alexander, chief executive of the Pre-school Learning Alliance, which has 30 neighbourhood nurseries - 26 of which are now designated children's centres - said that the ending of the three-year subsidy in April 2007 presents 'significant challenges'.

Steve Alexander, chief executive of the Pre-school Learning Alliance, which has 30 neighbourhood nurseries - 26 of which are now designated children's centres - said that the ending of the three-year subsidy in April 2007 presents 'significant challenges'.

He said, 'The Government's commitment to reaching disadvantaged children and families is without question. However, three years ago the occupancy targets we were given were wholly unrealistic and some settings were located without a full needs assessment. As a consequence we have struggled - along with the rest of the sector - to break even. We've increased attendance rates but we are delivering at a deficit and when the subsidy is withdrawn we stand to lose more than 1.5m.'

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