Nursery World - To the point... (87)

This week's columnist Alan Bentley thinks nurseries will be forced to pull out of NEG schemes if top-up fees are banned While almost everyone in the private sector supports the efforts this Government has made in improving childcare, many are becoming increasingly frustrated at the total lack of financial credibility that attends their schemes. Projects such as NNI and Sure Start, for example, were good ideas. However, the funding mechanisms attached to them - often based around a three-year period - have been disastrous. Many facilities are now either closing or cannot afford to offer the very provisions for which they were set up.

Projects such as NNI and Sure Start, for example, were good ideas. However, the funding mechanisms attached to them - often based around a three-year period -have been disastrous. Many facilities are now either closing or cannot afford to offer the very provisions for which they were set up.

Sustainability was never thought through.

Nowhere is this lack of consideration to financial probity and sustainability more evident than in nursery education grants. The idea was sound - every child over three could enjoy a period of free nursery education, paid by Government funding.

The idea has been a great success. However, given the cost of scheme to the Treasury, around 3bn per year, the fee rate allocated by local authorities seems to be limited to about 3 per hour. Where did this figure come from? It was set without meaningful consultation with the nursery sector or any real understanding of its commercial impact. The problem is this rate is unsustainable in most areas of the country for quality childcare.

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