William Eichler 20 April 2016

Whitehall's childcare plans 'underfunded', charity warns

The Government's 30-hour free entitlement offer is 'underfunded', an educational charity argues as survey reveals half of childcare providers fear it will result in closures.

Whitehall plans to double the free entitlement to childcare to 30 hours a week for working parents of three- and four-year-olds as part of the Childcare Bill.

Pre-school Learning Alliance, however, warns the sector does not have the capacity to deliver the policy, describing the Government's plans as 'underfunded' and 'under resourced'.

A survey carried out by the Alliance reveals 49% of providers think there's a risk that they could close as a result of the 30-hour free childcare extension. A further 1% already plan to close.

48% of respondents think that the 30-hour offer will force them to reduce the number of places they offer to other age groups, and 50% don't feel confident that they have the capacity to meet projected demand.

The Alliance's survey also found 58% of childcare providers expect the 30-hour offer to have a negative financial impact on their business.

19% aren't planning to offer the 30-hour offer, while a further 51% aren't sure - in comparison, 98% of respondents currently offer the 15-hour free entitlement.

Last month the National Audit Office warned local authorities would struggle to find sufficient places and the new entitlement would only make this more difficult.

Commenting on the survey results, Neil Leitch, chief executive of the Pre-school Learning Alliance, said: 'These figures are a stark warning of what could happen if the Government insists on rolling out an underfunded, under-resourced free entitlement offer.

'While we welcome plans to increase average early years funding rates as an important first step, independent research has shown that, with continued cost pressures including the introduction of the 'national living wage', this will still leave a significant funding gap for early years providers.

'Given that the move to 30 hours means that most providers will no longer be able to cross-subsidise in order to plug this gap, it's no surprise that so many are fearing for their future.'

SIGN UP
For your free daily news bulletin
Highways jobs

Trainee Sheltered Housing Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£30,510- £36,969 per annum
The London Boroughs of Richmond upon Thames and Wandsworth present a unique opportunity to be part of a team who work together in a ground-breaking shared staffing structure across both boroughs. Are you passionate about making a difference in the lives Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Assistant Team Manager

Oxfordshire County Council
£50,269 - £53,460
About Us Together, we’re shaping children’s social care for the future. Every day, our colleagues are helping to transform the lives of the residents of Oxfordshire. In our Early Help, Assessment and Prevention Directorate, we’re committed to del Abingdon
Recuriter: Oxfordshire County Council

Finance Business Partner (Qualified)

The Royal Borough of Kensington & Chelsea Council
Negotiable
Provide expert financial strategy and insight to shape our services and build a fairer boroughProvide expert financial strategy and insight to shape o England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Residential Support Worker - Development Programme

Durham County Council
£26,403 - £28,598
Residential Support Workers – Temporary 12 Month development opportunity Salary
Recuriter: Durham County Council

Service Improvement Support Officer

Durham County Council
Grade 10 £38,220 - £41,771
Applications are invited for a Service Improvement Support Officer within the Adult and Health Services Development and Learning Team. The position is Spennymoor
Recuriter: Durham County Council
Linkedin Banner