Ministers reaffirm 30-hour childcare pledge, but funding crisis looms

However, early years organisations also warn today that without more funding nurseries will be unable to extend their hours.

They say that they are propping up an under-funded system, which will be exacerbated by policies such as the introduction of the “national living wage”.

Figures from a survey by the Pre-school Learning Alliance and Ceeda, released exclusively by Nursery World on Monday, show that the NLW will create a funding gap of hundreds of millions of pounds, without a serious commitment from the Government to reforming the way free childcare places are funded.

The Government has however pledged to increase hourly funding rates and a consultation with the sector on the funding review closed earlier this month.

Childcare providers and local authorities are being asked by the Department for Education to volunteer to be among the first to double the hours of funded childcare to working parents.

Ministers say that they are looking for innovative and flexible ways of making the offer available.

The DfE is also holding discussions with major employers and their employees to ask them for their views on the 30-hour plans.

The department is using a Facebook survey and a twitter hashtag #30hourschildcare to reach as many parents as possible.

Parents at the event in Derby today will be asked for their views on doubling the offer from 15 to 30 hours a week for three- and four-year-olds. Working parents wuth different jobs and salaries will discuss what the extra 15 hours of childcare would mean for them.

The event is just one of a number planned with the Cabinet Office at large companies, including Legal & General, Deloitte, Hewlett-Packard, John Lewis, and 02.

A DfE survey of 2,000 parents has found that three-quarters of them would take up the 30-hour offer.

Education Secretary Nicky Morgan said, ‘For too long, rising childcare costs have been a barrier to working parents and particularly mothers. This One Nation Government is on the side of hardworking people - that is why this time next year we’ll see the first families benefit from the Government’s offer of 30 hours of free childcare for working parents.

‘Today, we’re calling on providers to tell us how they can offer innovative, high quality childcare that helps parents return to work while keeping more of their hard-earned money in their back pocket.’

Natalie Sigona, Rolls-Royce, Global Diversity and Inclusion Consultant, said, 'Rolls-Royce is committed to developing a diverse workforce and an inclusive working environment. In a rapidly changing and competitive economy we recognise how important it is to have an agile and flexible work environment to enable high performance.

'We support our employees in achieving a balance between work and home life and we are pleased that they have this opportunity to feedback their opinion on the Government initiative.'

Parents' views will feed into the Government's childcare taskforce, led by employment minister Priti Patel, with Mr Gyimah.

Commenting on the plans, Purnima Tanuku, chief executive of the National Day Nurseries Association, said, ‘With the first 30-hour free places due to roll out in just a year’s time, it’s vital that Government ensures childcare providers are able to offer these much needed places to every parent that wants one.

'Chronic underfunding of free nursery places means most nurseries are already losing money on every free hour of childcare they provide. ‘

'While welcomed by nurseries who want to see their staff better rewarded, the new “national living wage” will exacerbate this funding shortfall.  

‘Nurseries have a track record of providing flexible, innovative childcare that meets the needs of families, and have great potential to do even more, but the key to this is a meaningful increase to hourly funding rates for free places.’    

Neil Leitch, chief executive of the Pre-school Learning Alliance, said, ‘We welcome any policy that supports working parents with the cost of childcare but remain concerned at Government calls for providers to offer innovative and flexible ideas to prop up an already severely under-funded sector.

‘For far too long the Government has relied on the continued goodwill of the sector and unless sufficient funding is provided, the sector will be unable to deliver the extended hours.

‘As such, before attempting to publicly appease parents and raise unrealistic expectations, Government should first work with the sector to agree best way to deliver the scheme.’

Imelda Redmond chief executive of 4Children, said, 'The news that the first parents will be receiving 30 hours of free childcare from next year will be welcomed by many who struggle to make work pay against the high cost of childcare.

'Research tells us that for childcare to benefit children’ development, it must be high quality. That’s why it’s crucial that Government works with the sector to understand the challenges that must be addressed in order for both children and families to make the greatest gains.

'With the funding consultation now closed, we look forward to hearing the results which must ensure funding levels match the needs of providers to deliver high quality childcare and give children the possible best start in life.'