Private sector demands funds for more free hours

Private sector nurseries have warned that Government proposals to increase the hours of free nursery education for three-and four-year-olds will not be viable without increased and ring-fenced funding, following last week's launch of the consultation on the draft code of practice.

The code comes into force in November in advance of plans to extend free nursery education for all three-and four-year-olds from 33 weeks a year to 38 weeks from April 2006.

From April 2007 the entitlement will start to increase from 12.5 to 15 hours a week for 38 weeks, and parents will be able to use the time flexibly over a minimum of three days. By 2010 this entitlement will cover all children, with plans to extend it to 20 hours.

Purnima Tanuku, chief executive of the National Day Nurseries Association, welcomed the extension, but said 'it must go hand in hand with a higher level of funding per place and ring fencing so the full amount reaches nursery education provision in all sectors. Day nurseries will be less viable if they are asked to deliver more "free sessions" that are inadequately funded.'

She also voiced concern that the guidance suggested 'incentivising' schools to extend into a full integrated day, and whether a school setting was appropriate for three-and four-year-olds.

Sue Meekings, director of childcare at nursery group the Childcare Corporation, which operates 17 nurseries, said the increase to the free core offer would make it 'extremely challenging' for private providers to deliver high-quality provision. 'Current funding doesn't cover two-and-a-half hours of care and education,' she said. 'As they increase the entitlement, the grant is not going to meet the costs. It looks like the Government is trying to price the private sector out.' She agreed that the grant should be ring-fenced.

Childcare Corporation chairman Alan Bentley said, 'The private sector will have to carry the cost. The Government is not taking into account the real cost of running childcare. The grant would represent little more than half the average rate charged in private nurseries. The Government's attitude is to limit the private sector through the back door.'

The consultation on the draft code of practice on the provision of free nursery education places for three-and four-year-olds is at www.dfes.gov.uk/consultations. It ends on 30 September.