Children's centres could be closed to boost efficiency

The report, Finance: Current Issues and Future Policy Proposals, has been prepared for the group's next meeting on Wednesday 3 March. It is co-authored by Peter Churchley, chief executive of childcare organisation Caring Daycare, and Philip Blackburn, author of Laing and Buisson's annual report on the childcare sector.

According to the discussion paper, the government's children's centre programme is vulnerable to cuts as it has delivered "mixed success" while "its penetration in deprived areas is variable and inconsistent across the country".

The authors suggest that from 2011 government funding for the programme will be reduced and no longer ringfenced. As a result ministers will move to identify and focus on services which produce the most effective outcomes for families.

"The need for and benefit of children's centre services are likely to vary across regions and localities," according to the report. "The future is likely to see a merging of centres in regions to remove ineffective, inefficient and unnecessary supply, based on new target criteria. In this environment phase three centres are vulnerable."

The children's centre programme has been split into three phases, with the intention of targeting the most deprived areas first and getting services to families who need them most. The government is expected to reach its target of 3,500 centres by April This year. But some concerns have been raised over whether third phase centres are in locations that best meet the needs of local families.

The Day Nursery Policy Groups is a representative body of childcare providers from the private, voluntary and independent sector. Its aim is to influence and challenge government policy with the intention of improving the position of pre-school childcare in the UK.