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

Assistant Director Children’s Partnerships and Sufficiency

North Yorkshire Council
£100,545 to £111,533 plus relocation support  
North Yorkshire is England’s largest county and a beautiful, vibrant place to live and work. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Deputy Chief Executive – Corporate & Communities

South Oxfordshire and Vale of White Horse district councils
£146,697
As Deputy Chief Executive – Corporate & Communities, you will guide cultural transition, manage competing priorities Oxfordshire
Recuriter: South Oxfordshire and Vale of White Horse district councils

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

Domestic Assistant

Durham County Council
£24,796 - £25,185 pro rata p.a
If you are someone who takes pride in creating clean, safe, and welcoming environment and enjoy making a difference in people’s daily lives through at Durham
Recuriter: Durham County Council

Cleaning Assistant

Durham County Council
Grade 1 £24,796 p.a. pro rata to hours worked (£12.85 per hour)
Are you looking for work that fits around your schedule and lifestyle? A permanent post is available at The Grove Primary School, Consett
Recuriter: Durham County Council
Linkedin Banner