Poll: Will plans to introduce 30 hours of free childcare force some nurseries to close?

Calls for an urgent review of childcare funding in Telford & Wrekin were made today by childcare providers.

Penny Hustwick, managing director of ABC Day Nursery, said it was highly likely that Telford & Wrekin would be selected as a pilot area for the Government's plans to double free childcare for three and four year olds and therefore it was critical that officials began reviewing funding as a matter of urgency.

"Telford and Wrekin has piloted pretty much every new childcare scheme implemented by the Government so far, including the two-year-old funded places," said Mrs Hustwick.

"Because of it being a unitary authority it seems to be a good area to test the water. It seems highly likely therefore that the borough will be selected if they have requested to be a pilot area for the new 30 hours of free childcare.

"My concern is that while extending free childcare is fantastic news for parents, the current funding nurseries get from the council is not enough to sustain an increase in hours.

"Nursery providers are already under pressure and without a rise in the hourly funding rate many will be forced to close, causing a loss of nursery places and jobs.

"It's essential council officials are prepared for these changes and begin reviewing rates as soon as possible."

Mrs Hustwick, who operates four nursery sites in Telford, all rated Outstanding by Ofsted, currently provides 200 funded places under the current 15 hours of childcare scheme.

Local government funding for each child in Telford & Wrekin varies between £3.52 and £4.07 per hour but Mrs Hustwick claims this needs to increase by a minimum of £1 per hour per child to make the new 30 hour proposals sustainable.

She said: "In recent years running costs have risen, minimum wages have gone up, VAT has increased and business rates have gone up but there has been no increase in the hourly funding rate we receive from the council.

"We cannot lose sight of the fact that 30 hours of free childcare is a good thing for parents and families but it has got to be sustainable."

The Conservative plans to double free childcare will benefit 600,000 families across the UK. Pilots of the scheme will begin in September 2016 with the scheme being rolled out nationwide the next year.

Earlier this month the National Day Nurseries Association (NDNA) welcomed progress on the Childcare Bill and it is expected that parents, providers, local authorities and employers will soon be consulted on the provision of free childcare.

Claire Schofield, the NDNA's director of membership, policy and communications, said: "For the sector to grow and flourish, it is vital that the free childcare funding review delivers a meaningful increase in the hourly rate received by nurseries through their local authorities, so that the cost of high-quality care can be covered, and providers no longer make a loss on these places."