Conservatives offer funding boost for free childcare scheme

A statement from the party has confirmed that “a Conservative government will increase the hourly funding rates paid to providers in different parts of the country, and will consult on the appropriate level and design of the uplift”.

The move follows the inclusion of plans in the Conservative Party election manifesto, launched yesterday, to raise the current free childcare entitlement for all three- and four-year-olds from 15 to 30 hours per week from 2017 should it take office.  

While Pre-school Learning Alliance chief executive Neil Leitch has welcomed the move he remains sceptical that early years providers will gain a fair deal.

He said: “We warmly welcome the commitment to raise local funding rates. That said, it seems somewhat counter-intuitive to commit to doubling the free entitlement offer before consulting with providers to find out the size of the current funding shortfall.

"While this is clearly an attractive pre-election pledge, it must be adequately costed if it is to succeed in the long-term.”

Claire Schofield, director of membership, policy and communication at the National Day
Nurseries Association (NDNA), also welcomed the promise but warned that “any increase should properly reflect the realistic cost to the providers of delivering these places”.

Latest NDNA research shows providers face an average shortfall of £800 per child for each funded three- to four-year-old's place under the current allocation. In addition, February’s House of Lords select committee report on affordable childcare detailed how many independent early years providers were not being given enough funding to employ graduates.

Schofield added: “There is overwhelming evidence both from NDNA members and the recent House of Lords select committee report on affordable childcare that details the scale of the issue of funding shortfalls within nurseries.

“Any review must therefore address this issue for the existing free childcare provision to be viable, sustainable and of high-quality, let alone any further expansion of free places.”

Nursery providers claim underfunding of free childcare in some parts of the country has contributed to a shortage of places being created, because it costs more to deliver care than the fee paid under the scheme.

In its election manifesto the Conservatives have also pledged to invest in a capital funding programme to boost extra childcare places in schools.

The Labour Party has pledged in its manifesto to increase free provision to 25 hours a week.