Backdown over Ofsted fees increase

The proposed rise in annual fees for the Early Years Register (EYR),covering children below the age of compulsory schooling, and the OfstedChildcare Register (OCR), covering children aged six and above, was topay the equivalent of 25 per cent of Ofsted's service costs in 2010. OCRcosts will remain at 103 for childminders and 114 forother providers, but EYR fee rises have been reduced.

Announcing the changes at the annual conference of the National DayNurseries Association, children's minister Beverley Hughes said, 'I havelistened closely to the views of nursery managers and childminders andtaken the decision to increase fees only gradually alongside a newfairer system of fee banding from September. I believe that this willgive reassurance and bring stability to the sector, while helpingproviders manage change.'

A DCSF consultation document last year outlined a banded-fees system,set to shift the costs of regulation to the provider (Analysis, 5December 2007). The EYR fees were set to rise by almost 300 per cent forfull daycare settings.

These will now go up to 180 in September, rising to 220 in2010. Childminders and sessional providers on the EYR will pay from35 to between 35 and 50 respectively (seetable).

Andrew Fletcher, director of communications at the National ChildmindingAssociation, said, 'It is disappointing that the department has chosennot to review the fees for the OCR, and clearly there is still a lot ofwork to do to ensure the long-term fee and subsidy framework beyond 2010is proportionate and fair.'

NDNA chief executive Purnima Tanuku said, 'Members had huge concernsabout the impact of the proposed fee increases upon their sustainabilityand potential increases for parents, and many felt it was a threat toviability. There were questions about how local authorities could ensurethat these funds reached providers who really needed support. This moveillustrates the importance of getting involved in consultations.'

Steve Alexander, chief executive of the Pre-school Learning Alliance,said, 'This news will come as a relief to the Alliance's 15,000 members,who were dismayed to be faced with proposed increases averaging at astaggering 1,175 per cent. Our members contacted us in droves, sayingthese were the last straw in light of the mounting financial pressuresthey face as they strive to offer affordable quality childcare, and stayviable.

'It is crucial that this and other cost pressures on providers areaddressed - we would argue, by long-term supply-side funding.'

Costs will now rise gradually by small amounts over the next threeyears.

REVISED FEES FOR THE EARLY YEARS REGISTER

Band 2007 2008 2009 2010

1 (childminders) 20 25 30 35
2 (other provision) 20 25 30 35
3 (provision above 155 180 200 220
time thresholds)
Sessional care providers 20 25 30 50
moving to band 3 but
not paying band 3 levels
at present