Providers stumble over grant scheme
Simon Vevers
Wednesday, August 4, 2004
Private providers have found operating the nursery education grant for three- and four-year-olds increasingly difficult since the Government issued explicit guidance earlier this year warning them not to charge top-up fees for free places. The National Day Nurseries Association (NDNA) warned that some nurseries may cease to operate the scheme. It is calling for 'a realistic overhaul'
The National Day Nurseries Association (NDNA) warned that some nurseries may cease to operate the scheme. It is calling for 'a realistic overhaul'
of the system and one stream of funding to cover 70 per cent of nursery fees.
NDNA chief executive Rosemary Murphy said that nurseries, including those in Kent, typically charge around 15 for a session and then reduce the charge by about half the amount provided by Government to local authorities for a free two-and-a-half-hour session.
But under Sure Start guidance issued in April for 2004-05, another version of which has been created by Kent County Council, nurseries are not allowed to charge parents any fee for their eligible child's free nursery education place.
Ms Murphy said that the sustainability of some providers was being thrown into doubt because they may have based their fee structures, waiting lists and staffing on the assumption that they can charge a top-up.
Alex Gamby, head of Kent early years and childcare, said, 'Some nurseries have a major issue with this. But it is an offer of free education and it is an entitlement. If providers charge top-up fees as a condition of the place, then it's no longer free.'
She said pulling out of the scheme had been put forward as a possible response by some providers. She added, 'If a nursery is not operating the scheme those parents will go elsewhere.'
Pressure on nurseries has intensified since the Government stopped ring-fencing the grant and started giving local authorities a lump sum, without specifying how much they should hand on to providers to cover the free places.
A DfES spokeswoman said, 'There is sufficient funding in the Education Funding Spending Share to enable local authorities to meet their obligations.'
Ms Gamby said Kent had increased its grant per place by 10 a year in line with the rise introduced by the Government, and parents will be subsidised to the tune of 426 a term from this autumn.
Ms Murphy said she hoped that Chancellor Gordon Brown takes the opportunity to undertake 'a realistic overhaul' of the funding system when he budgets for his ten-year childcare plan later this year.
