Cash flow threat to private nurseries

Private daycare providers could face a cash-flow crisis and a threat to their viability under a new code of practice covering the provision of free nursery places to three-and four-year-olds that the Government is introducing from next week. Until now it has been customary for providers to receive money from parents to cover the cost of a place and then to reimburse them when the local authority funding came through. But, according to Clause 90 of the code produced by the Sure Start Unit, from 1 April, 'parents of eligible children should pay no charge in respect of their child's...