In March, Chancellor Gordon Brown pledged to refund VAT paid by local authorities on welfare services such as childcare and children's centres (Children Now, 23-29 March). But George McNamara, policy officer at NCH, said the decision put the voluntary sector at a competitive disadvantage.
A spokeswoman for the National Day Nurseries Association said it had not heard about extra funding.
A Treasury spokesman told Children Now that ministers would keep the impact of the VAT change under review.
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