CYP Now - Analysis: Affordable childcare - Capital looks to providersubsidies

London's 33m Childcare Affordability Programme is intended to extend access to low-cost childcare and give parents and providers more flexibility, ending the problem of spare capacity. Jo Stephenson examines how the new system is working.

There is a lot riding on the success of London's Childcare AffordabilityProgramme, the first large-scale scheme offering direct subsidies tochildcare providers.

The scheme could make a real difference to the affordability andflexibility of childcare in the capital. Furthermore, if successful, itcould herald a major shift in government spending with a move towardsmore direct funding for childcare.

London Mayor Ken Livingstone was due to announce the first three yearsof funding from the 33m programme today. The money will subsidise3,235 childcare places. One third of the places will be affordablefull-time daycare; providers will receive a subsidy of 30 perplace, per week, in order to offer places for 175 a week. Therest of the money will fund flexible places, with subsidies of up to68 per shared place, per week.

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