Early Years Single Funding Formula could 'devastate' childcare providers, MP warns
The introduction of the Early Years Single Funding Formula looks set to have a devastating effect on childcare providers, the Liberal Democrat spokesperson for children, schools and families has warned.
Annette Brooke MP
Annette Brooke, MP for Mid Dorset and North Poole, voiced her concerns at the annual general meeting of the All-Party Parliamentary Group on Childcare, where she criticised the way the new formula is likely to be implemented in some local authorities.
'The implementation of the Single Funding Formula has been handled badly in part of my constituency and I fear some of the providers will be wiped out if the local authority doesn't see sense and respond to the representations being made,' she later told Nursery World.
'I have met with a deputation of providers who are all deeply concerned, even if they are not losing money on the current proposals. The base rate proposed for a voluntary provider is just £2.74 per hour and one such provider estimates that they would lose £6,406 per year and the setting would no longer be sustainable. This is despite the setting being judged as outstanding.
'I have been told a neighbouring authority is proposing £3.74 for private and voluntary settings.'
Children's Minister Dawn Primarolo has also stepped in to give assurances that the Government is acting upon concerns about the EYSFF.
'The Early Years Single Funding Formula was categorically not designed to increase profit margins for PVI nurseries, or to close state-maintained nurseries. I have been quite explicit on this issue with local authorities and have asked them to use this period of ongoing consultation to hear your views locally and to incorporate them into their planning.'
