Newspaper reports suggested that the Department for Education and Skillswas considering using the fund to subsidise graduate employees innurseries and pre-schools. Private and voluntary providers could receiveup to 10,000 a year for every graduate they recruit.
"There is no question of a crisis in childcare or of us simply bailingout private nurseries," insisted a Department for Education and Skillsspokesman.
And Steve Alexander, chief executive of the Pre-School LearningAlliance, welcomed the idea of subsidisation. "Until now, the Governmentline has been that the wages in the non-maintained childcare sector havebeen a matter strictly between employer and employee. The deliberateintroduction of graduates and the subsidising of their wages sets awelcome precedent for future workforce investment."
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