Local authorities have been told by the Department for Education to put on hold any funding not already 'fully committed' to settings. This includes nurseries and childminders that have applied and have been working with local councils on plans to improve their settings, in the expectation they would receive the grant, which now may be disappointed.
The three-year funding scheme - also known as the Quality and Access grant - was set up by the previous Government to help settings improve their buildings, outdoor areas, ICT and facilities for disabled children. It ends in March 2011, but there are now fears that unspent money will be withdrawn.
Birmingham City Council was awarded £15.8m over three years and has committed £10.4m so far to early years settings.
This week the council confirmed that these projects will go ahead but that £5.4m has been put on hold.
A council spokesperson said, 'The total Childcare Capital Grant has not been frozen by DfE. Birmingham has been given the go-ahead this week to continue funding projects to the value of £10.4m. However, we are awaiting confirmation from DfE regarding the remaining £5.4m. The £10.4m relates to a number of childcare providers that have received confirmation their applications have met the criteria and have been approved by our Capital Panel.
'Unfortunately, a number of childcare providers have applied for funding but have not received confirmation, as their applications would have been covered by £5.4m, which is currently on hold until further instruction from DfE.'
Buckinghamshire County Council said 95 per cent of the £11.3m grant they had received had already been spent or committed and that some large building projects had already started.
Approximately 20 settings have applied for around £550,000 that is not yet fully committed.
The council warned that any withdrawal of Government funding would hit some PVI providers that had started to plan improvements. A Buckinghamshire County Council spokesman said, 'The vast majority of the allocation is already spent or contractually committed. We have had particular success with a small grants programme providing funding to 122 early years and childcare providers in the county, to support them in improving their premises and resources and to enhance their services to children. We also have some larger projects either underway or contracted.
'For the limited amount of funding not fully committed, our concern is, if this funding is withdrawn at this late stage many of our early years providers who have been working with us over many months to develop projects, would be extremely disappointed.'
Nottingham City Council said most of the funding has already been committed or spent. The council said it has been oversubscribed with applications and as a result had cancelled previously published rounds for October and December.
One last round of bids is open until the end of July.
A DfE spokesperson said that, while Sure Start revenue funding was protected for 2010-11, to tackle the deficit the DfE needed to manage down capital expenditure from the Sure Start Early Years and Childcare Grant (SSEYCG).
'We intend to do this by identifying possible savings and projected underspends in discussion with LAs. Making cuts over and above those identified as savings and underspends will be a last resort.
'Officials from Together for Children and the architectural consultants are in the process of contacting LAs to discuss their particular circumstances. Those discussions should provide us with an overall picture of any savings that may be made in 2010-11 and any projected underspends in that year.'
