Long-term future of childcare places in doubt

26 Feb 04
Too many new childcare places are being created with no thought given to how they can be sustained once public funds are exhausted, a senior MP said this week.

27 February 2004

Too many new childcare places are being created with no thought given to how they can be sustained once public funds are exhausted, a senior MP said this week.

Public Accounts Committee chair Edward Leigh said he was 'very concerned' that half of England's childcare providers had no plans in place for what they would do once government funding runs out.

'Many of them are already failing to recover their costs and are unable to predict what their future costs will be,' he said. 'And there will clearly not be enough qualified staff in future to meet the needs of the expanded childcare sector.'

Leigh was commenting on a National Audit Office report that charted the progress of the government's £14bn national childcare strategy.

The report, published on February 27, found that although the government is on course to meet its target to provide free part-time early education for three- and four-year-olds, most of this provision is not sustainable.

Although take-up of government start-up funds had been an important factor in the expansion of childcare places, many providers were unable to cover their costs, while others lacked the understanding to plan and keep the services afloat in the longer term.

In addition, expansion is threatened by lack of capacity. The government has estimated that 175,000 new childcare recruits are needed by 2006.

The report also highlighted significant geographical variations in the level of provision, with children from the most deprived areas having the poorest access, although the gap is narrowing.

Free nursery education places and the childcare element of the Working Tax Credit were found to have reduced the cost of childcare provision for eligible parents.

The NAO urged the Department for Education and Skills, which spent £680m on these services in 2002/03, to improve sustainability by ensuring providers are helped to understand their costs and planning. It also urged the DfES to grant greater co-ordination powers to local authorities.

Schools have an important role to play in expanding provision in deprived areas and developing better measures of progress, the report said.

NAO head Sir John Bourn said: 'The government's investment will be wasted if the new provision is not viable. More training is needed, especially for childminders, and providers need more support to help them manage their businesses.'

PFfeb2004

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