Changes to early education funding announced by the Government last weekaim to redress the balance between the private and voluntary sector andmaintained provision. But will this be too little too late for many PVIproviders, who can no longer afford to provide the free nurseryeducation entitlement at current levels?
The Government is to adopt a staged approach to reforming the fundingsystem for early years provision (News, 28 June). It will culminate in2011/12 in a single transparent formula so that early years money can beclearly identified in each local authority's funding. Children'sminister Beverley Hughes said, 'The changes will ensure that all localfunding allocations are transparent and consistent, and that historicinconsistencies are addressed.'
However, Steve Alexander, chief executive of the Pre-school LearningAlliance, disagreed. He said, 'We fear that unless more responsiveaction is taken sooner to close this "funding gap", the Government mayhave to prepare for many in the PVI sector withdrawing from the freeentitlement scheme or even going out of business altogether. If thiswere allowed to happen it would not only serve to derail theGovernment's laudable achievements so far in developing the early yearssector, but would represent a travesty for thousands of parents andchildren who benefit from these services.'
He also expressed disappointment that the Government did not ring-fencea specific amount of money to be allocated for early years within theDedicated Schools Grant. 'This means that the nursery education fundingmay still be arbitrarily "top-sliced" by local authorities into otherservices, which is the root cause of many of the current problems infunding the free entitlement in the PVI sector,' he said.
Colin Willman, a spokesman for the Federation of Small Businesses,echoed the warning. He said the Government must ensure that:
- local authorities are required to pay the minimum per child per houras set by the NDNA as the cost, or higher if the local PVI group canevidence a higher cost
- it should not be a condition of being able to trade that settingsaccept early years children; provision should be made for exceptionalopt-outs.
As part of the changes, PVI providers will have the chance toparticipate in school forums run by local authorities. Liz Bayram, chiefexecutive of the National Childminding Association, welcomed this. 'Itwill be particularly important as schools develop their extended offers,and increasingly work with childcare practitioners to deliver awraparound service for local parents.'
She added, 'In order to ensure that there is sufficient sustainablelocal childcare provision to deliver the free entitlement, theGovernment must continue to increase investment in the supply ofchildcare as well as parental demand. With this in mind, we look forwardto making an active contribution to the planned formula review of theDSG in July and welcome Government commitment to develop a single,transparent formula for use in the DSG distribution from 2011/12.'
