A recent investigation by CYP Now highlighted the different approaches taken by local authorities in the amount of funding they retain to administer the government-funded childcare programme. Under the scheme, councils are allowed to retain a maximum of five per cent of the total amount of government funding to deliver 30-hours of funded early education to three- and four-year-olds. This pays for functions like promotion, administering the scheme, staff costs and providing training for early years practitioners.
The average proportion councils retain is 3.8 per cent out of the possible five per cent, but four authorities have decided to pass on all the funding to childcare providers – one of which is Lancashire County Council. Matt Dexter, principal accountant at the North West council, says it has always passed on the funding in full “to give providers as much help as we possibly can”.
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