Campaigners warn of lack of funding to provide free childcare

Under the current system, all three and four-year-olds in England are entitled to 15 free hours of childcare a week, and there are plans to extend this to disadvantaged two-year-olds next year. But a poll by the Pre-School Learning Alliance suggests many nurseries and childminders do not believe they get enough money to meet the cost of the initiative.

Just one in 10 of the 550 questioned said they receive adequate funding to cover the cost of providing free childcare places under the Government’s free early years entitlement scheme.

The alliance said this was a “significant decline” from its last poll in May, when more than a third (38 per cent) thought they got sufficient funding.

Most of the childminders and nurseries polled said they did not think they would be able to offer the same level of service if Ministers considered changing staff-to-
children ratios as a means of cutting the cost of childcare for parents. Some 75 per cent said they are unlikely to lower their fees if the Government decreases ratios and increases funding for free places, with some of those questioned saying their fees are already low.

In a report earlier this year, before she became Education Minister, Elizabeth Truss suggested childminders should be able to take on more children at one time.

She argued that while the number of nursery places has increased since 1996, the number of childminder places has dropped drastically in the same period, to 245,000 in 2010, leading to price inflation.

Under current rules there has to be one minder for every three children aged five or younger, the report said, but this should be changed to one adult for every five children aged five or under, to attract higher-paid staff, improve the quality and availability of childcare, or make it more affordable.

Alliance chief executive Neil Leitch said: “Despite the fact that there is a direct cost benefit to providers in changing the staff-to-child ratios, given that approximately 70 per cent of costs are staff salaries, our survey finds little support for this action, with the vast majority stating that quality of care would be compromised.”

A Department for Education spokeswoman said: “We have set up the Childcare Commission to examine in detail what reforms need to be made. We are listening very closely to front-line professionals and to parents.

“We will be setting out next steps in due course.”