The Department for Education will consult with nurseries and key stakeholders to consider whether changes should be made to the current regulations. These require nurseries to offer parents a completely free nursery place for 15 hours a week with no 'top-up' fees.
Nurseries across the country are reporting that local authority funding does not cover their costs, with some already forced to pull out of the scheme rather than risk closure because the code gives them no leeway to make up shortfalls.
Before the election the Conservatives had pledged to suspend the code and allow nurseries to charge top-up fees, but despite protests it came into force as planned last September.
Kate Peach, managing director of Early Years Childcare, (pictured),who set up the website www.freechildcare.org.uk to campaign for more funding for the free entitlement or for nurseries to be able to charge top-up fees, said it was vital that individual nurseries contribute to the review.
'What we need is a very thorough and detailed review of the code, not just through trade associations but with input from providers about how onerous and difficult it is for nurseries,' said Ms Peach. This is particularly relevant because providers are dealing with local authorities on a daily basis.'
Early Years Childcare has nine nurseries spread across five different local authorities and Ms Peach said that the code was interpreted very differently by all of them. 'The bureaucratic way that the code is written allows that to happen and the number of "musts" and "shoulds" in the wording.'
She added, 'One local authority agreement we're asked to sign clearly states that we are not allowed to charge more than our advertised fee for hours outside the free entitlement, because this could constitute a top-up charge.
'Other local authorities are saying that we need to think about what we need per session to be sustainable. There are different levels of interpretation about what constitutes a "top-up".'
Ms Peach said, 'Local authorities are aware that the Code threatens sustainability and quality, so are finding ways round it. But if some are effectively turning "a blind eye", what's the point of having a code, when it's not being adhered to in the way it's intended? It would be very helpful if local authorities tell the DfE that the code does not work and is threatening the quality and quantity of nursery provision.'
She added, 'The Free Childcare campaign is joining forces with the Save our Nurseries campaign. We've reached a point where we have quite a diversity of providers involved. We're keen to get the message out there that this is not just a problem in the south but that nurseries in the north of England are also affected by the Code of Practice and the Early Years Single Funding Formula (EYSFF). We're aiming to make contact with a lot more providers.'
Purnima Tanuku, chief executive of the National Day Nurseries Association, said, 'While nurseries have adapted well to free nursery education becoming flexible, a significant proportion of settings continue to face issues from being funded at a rate below costs.
'While the EYSFF is designed to help settings to be funded at a rate that is fairer and more equitable, a number of areas have reported that funding levels are still not delivering a rate that is reflective of costs. The review is a valuable opportunity to raise how it can be adjusted to make delivery of funded places more sustainable.'
She added, 'Some settings may feel that some of the national parameters could be changed to give families increased flexibility, so the places work better for all involved. However, this has to be balanced with the need for a consistent approach nationally to free nursery education. NDNA will be supporting members to respond to this important consultation when it is released.'
