Analysis: Childcare - Lack of funding hampers schemes

The introduction of free childcare for all three- and four-year-oldstransformed the childcare market and helped thousands of families.

It is seen as a milestone in Labour's evolving early years policy andministers often say it is a key achievement.

Yet there is concern that the scheme is not working for private- andvoluntary-sector providers who offer a large share of free places(Children Now, 2-15 August). They say funding no longer matches the truecost of providing the places, threatening the viability of settings andforcing some to think about pulling out.

Take Lesley Dawson, who runs four private day nurseries in Leeds andCalderdale. She worked out that her Granary Wharf Nursery in Leeds citycentre was losing 80p per standard two-and-a-half-hour free session, perchild. That equates to nearly 2,000 a year, or roughly 7,900 for all four nurseries.