Free 30-hour childcare trial begins in York

Working Parents in part of Yorkshire are now being offered 30 hours of free childcare in a pilot scheme to be rolled out across the country next September.
Purnima Tanaku, chief executive of the National Day Nurseries Association (NDNA).Purnima Tanaku, chief executive of the National Day Nurseries Association (NDNA).
Purnima Tanaku, chief executive of the National Day Nurseries Association (NDNA).

The Early Implementers programme, which started in York yesterday, has prompted concerns from some childcare providers that they face a huge funding shortfall. But for parents who are to benefit, with the average cost of full time care in Yorkshire now reaching £800 a month per child, the free hours are a lifeline.

“Childcare is a really big bill for parents,” said Lesley Calvert of Funfishers pre-school based at Fishergate Primary School. “For some, it’s their whole wage.

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“I’ve got lots of parents who are on the line because their whole wage goes on childcare - but they want to keep in work so they don’t lose ground. This could be the tipping point for some who are deciding if they can afford to work or not. It will enable them to get out of the benefits trap.”

Mrs Calvert’s pre-school is one of 166 in York, 72 per cent, which have signed up to the pilot.

The £13m scheme is part of the Government’s pledge to introduce 30 hours of free childcare, announced in February, to make it easier for parents to work. The current entitlement - 15 free hours - would be doubled for those who work more than 16 hours a week but earn less than £100,000. It is being trialled in eight areas including York before being introduced across the country next September.

But the move, which will need Government investment of £1bn a year by 2019, sparked much controversy with many questioning where the money would come from. And, with the Government’s hourly reimbursement often lower than the nursery rate, there are concerns that they could lose out financially.

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“The financial side of this is a big worry for some,” said Mrs Calvert. “For providers who are paid by the hour, the Department for Education rate is less.

“Many private providers will struggle. But this is a pilot scheme, and there is going to be problems. That’s why we’re taking part, so they can be ironed out.”

Purnima Tanuku, chief executive of charity the National Day Nurseries Association (NDNA), says there are huge concerns about the impact on providers.

“Funding is not really adequate to deliver high quality care and providers are making less,” she said. “Costs are increasing but the amount that childcare providers receive has stayed the same.

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“We want the Government to address this as a fundamental issue. You can’t expect providers to provide more for that lesser amount of money.”

A consultation on the funding formula is underway until September 22 and Mrs Tanuku is calling for a review of provision.

“We must make sure it is sustainable to provide these 30 hours, which we all agree is brilliant for parents,” she said. “But childcare providers cannot be expected to make a loss.”