The government launched the review in August to understand how the extended provision for all three- and four-year-olds will be paid for.
The findings of the first stage of the review states that while the majority of responses listed the factors that providers perceive to be their main areas of expenditure, these were “often not supported by figures”.
“This means that we have been unable to understand which costs are as a result of delivering the entitlement and which are not,” the document states.
“This may indicate a lack of clarity around what government funding should pay for.”
The document goes on to state that while some respondents did provide more detailed accounts of their outgoings, opening hours and number of entitlement hours provided, others reported their perceived funding shortfall when comparing their local authority’s funding rate with the price they charged parents.
“While we have been able to identify what providers perceive to be their main areas of expenditure, we were unable to determine from the responses what providers’ unit costs were.”
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