Doubling of free childcare ‘could force nurseries to close’
BBC News | Judith Burns, Education reporter | 20th April 2016
Nearly 750 childcare providers say they fear being put out of business by government plans to double free hours, says the Pre-school Learning Alliance.
In 2017, free care for three-and four-year-olds will rise from 15 to 30 hours in each term-time week.
But childcare providers say the scheme is underfunded, and 49% of 1,500 who chose to respond to an online survey said they could be forced to close.
Ministers say many providers are keen to take part in the scheme.
The Pre-School Learning Alliance sent out an online questionnaire to members last month.
Of almost 1,500 who replied:
- Nearly 750 of the 1,500 (49%) said they feared having to close because of the plan, with a further 1% already planning to do so
- 58% said it would have a negative financial impact on their business
- 50% feared they lacked the capacity to offer twice as many free places
- 48% said it would force them to cut places for other age groups.
Almost all the respondents (98%) said they were already offering the 15 hours of free childcare, but only a third said they would definitely offer the 30 hours, with 19% saying they definitely would not and a further 51% unsure.
Local authorities are responsible for ensuring there is enough nursery provision, but a National Audit Office report last month warned councils might struggle to find providers willing to offer the 30 free hours for all eligible children.
The report also highlighted childcare providers’ concerns about funding levels.