Work Matters: Management Focus - Counting the cost

All may seem quiet on the nursery education funding front, but behind the scenes it is a very different story.

Following months of headlines about the impact of the free early years entitlement on nurseries' sustainability, there have been achievements, such as the funding consultation which will lead to a number of reforms. These reforms include a single funding formula and the same methods for counting children across sectors, which in theory should stop the funding of empty places in maintained settings.

Of course, with some of the reforms not in place until 2009, there are still pressing issues for providers. To ensure that they influence reform, and the case is made for realistic funding, providers need to get involved now.

The first step in these reforms is the cost-analysis process, which involves all local authorities working with childcare providers to determine the cost of delivering funded sessions locally. There is no better evidence for increased funding than if a provider can show figures on paper that demonstrate that the money is not enough.

NDNA understands there are concerns around this for providers, and the process can feel intrusive, as a nursery may be sharing commercially sensitive information. It is essential that a local authority only asks for relevant information and ensures this remains confidential. It is also vital that it is recognised that profit is an essential part of a cost base and long term sustainability.

Without your information, it is unlikely your local authority can have a true understanding of funding needs and this information will be used to inform budgetary decisions for 2008.

Amid the frustrations of the current situation, it is easy to feel that the time has come for dramatic action, such as a strike or pulling out of the scheme. But this does not help solve issues, which will impact most upon the children and parents that your high quality care and education is helping. It will only make the sector appear money-motivated.

We are continually campaigning for more support at the highest levels in government. NDNA will review the outcomes of the cost-analysis process next year, and where necessary we will push for further appropriate action including separately identified funding.

It is ae challenge that will require some difficult conversations at times. But it is critical that we all play our part in sorting a system that has many historical issues. Don't miss out on your opportunity to make a difference.

FURTHER INFORMATION

NDNA is supporting members to get involved in a variety of ways, including factsheets and localised support. To find out more, contact NDNA on 01484 40 70 70.