The move comes following a furious response from early years providers across the county, and just hours after Nursery World broke the story online.
The council had said that the definition of childcare in the Childcare Act 2006 precluded early years providers from claiming funding for any child where a relative was employed in any capacity at a setting that the child attends.
However, early years providers were told this afternoon that the council would be putting the plan on hold, pending clarification from the Department for Education.
An email addressed to providers from Alison Kenny, learning improvement support group manager, sought to reassure nurseries and said that after receiving a number of concerns from providers the council was seeking further clarification from the DfE.
In a statement Bob Stott, director of Children’s Services, said, ‘We wrote to our early years providers last Friday (27/3/15) regarding eligibility for free early education payments, particularly in relation to their own, or their relatives’ children. This was based on information received from the DfE.
‘Since then, a number of concerns have been raised about the implementation of this policy with regard to group settings, such as nurseries. We are currently in discussion with the DfE, and we should be able to share the outcome of this by Friday 10 April.
‘In the meantime we’d like to confirm that there will be no changes to the present arrangements and there is no need for children to be moved from the daycare placements they are in at the moment. We apologise for any inconvenience caused.
‘The rules for childminders are clear though, in that they cannot be paid for looking after their children or their relatives’ children.’
The Department for Education had earlier slammed the council’s decision.
A spokesperson said, ‘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.’
Heather Langridge, owner of Sunflowers Childcare in Burnley, said the plan would have affected two members of her staff, who would be unable to stay in their jobs because they would need to drop off and pick up their children from other settings.
'Basically, it stops parents having a choice about where their children go.'
She added that she had been 'absolutely amazed' to receive the email, because there had been no meetings or discussions about the council's plans.
