Council stops children with relatives in nursery claiming free hours

Lancashire Council has written to early years settings at the start of the Easter holiday informing them of the policy change, which it says is being implemented in line with the Childcare Act 2006.

However, the Department for Education has now waded into the debate.

A spokesperson told Nursery World, ‘The Department is clear that funding for the free entitlements to early education for two-, three- and four-year-olds cannot be claimed by or spent on individual childminders providing childcare for related children, even if they are in receipt of funding for other children.

‘However, it is not the Department’s intention that this should apply to children related to members of staff in group settings, such as pre-schools or nurseries.’

The council has not said why it has decided to introduce the change now.

The move stands to disrupt the lives of thousands of parents and children, with nurseries receiving just two weeks’ notice of the change, which is set to come into effect from the start of the summer term.

The National Day Nurseries Association has been inundated by calls from nurseries asking for advice, after providers received the email last week (27 March), advising them that children who have relatives working in the setting would no longer be eligible for funding.

It warns the plans will cause chaos for parents as they may be forced to move their children to other settings during the Easter holidays.

The email sent to nurseries said, ‘It has come to light that a number of providers have been claiming Free Early Education (FEE) funding for children that are related to members of staff employed at the same childcare setting attended by the child. The definition of childcare precludes early years providers from claiming funding for any child where a relative is engaged in any capacity at the setting in which the child attends.’

The NDNA said it knows of no other local authorities that interpret the guidance in this way and is calling for the council to urgently rethink its policy.

Catherine Bell, owner of Small Wonders nursery, told Nursery World the change would affect some of her staff, including parents of funded twos.

Just before Christmas she received grant funding from the local authority to expand her places for two-year-olds, but this will also affect this provision.

‘I’m very, very grateful for this funding, but at the same time I will have potentially two of my staff’s children who will be applying for twos’ funding, and I wouldn’t be able to accept those children because their parents work here,’ she said.

She added that her nursery manager Louise Allen, whose grandson attends the setting, and her daughter Keryn Bamber would be directly affected (pictured).

'Daniel will be entitled to claim the twos funding in September. However with the new ruling from LCC he will not be doing so, as his mum does not want to disrupt his nursery care by changing settings.'

'Keryn also feels that if the ruling is still in place when Daniel turns three she would rather give up her job and stay at home with Daniel than put him in another setting.'

Lisa Beckwith, owner of Pendle Nursery, said 20 children would be affected, including her great nephew who has cerebral palsy.

‘The impact on the nursery has been one of chaos, upset and confusion,’ she said. ‘Children in their last term before school have had their funding removed, two children with severe learning difficulties have had funding removed. Parents are trying to find places for children who don’t understand why they must move.’

Purnima Tanuku, NDNA chief executive, said, ‘Lancashire County Council is unfortunately misinterpreting the Childcare Act, which goes against the spirit of universal free early education and parental choice.

‘This policy would affect thousands of children and parents in the county and most nurseries there.

‘It stands to reason that, for the convenience and comfort of staff, their young children will very often attend the nursery where they work. They should not be penalised for that practice, which happens throughout the country.’

Neil Leitch, chief executive of the Pre-school Learning Alliance, said, ‘We welcome the clarification from the Department for Education on this issue, which will no doubt come as a great relief to many providers in Lancashire.

‘Given the level of confusion that arose on this issue, it would seem sensible for the guidance on free entitlement funding for related children to be amended for greater clarity. This would prevent future misinterpretations, and ensure that all local authorities are clear when this rule does and does not apply.’

Sources say that the council is now intending to make a U-turn on the plan, although Nursery World has yet to receive official confirmation.