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Childcare: Draft guidance on supporting providers out for consultation

1 min read
Local authorities should be wary of wasting money on propping up failing childcare businesses, says the Government.

The warning comes in draft guidance on the Childcare Act published forconsultation last week. The guidance describes how local authoritieswill be expected to live up to a duty to "secure sufficient childcare"that comes into force in April 2008.

It also covers a duty to support childcare providers by giving theminformation, advice and training. This duty comes into force in October2008. The support could include training or business support, short-termfunding to help set up new childcare or long-term funding for childcarein areas where there is a big gap.

But the guidance advises against trying to "buck the market", pointingout that around "12 to 14 per cent of all small businesses close everyyear".

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