What's the situation at the moment? All three- and four-year-olds are entitled to 12.5 hours of free childcare a week for 38 weeks, increasing to 15 hours a week by 2010. The free places are paid for through the Dedicated Schools Grant, which is distributed by local schools forums.
Isn't there some controversy? State childcare providers receive funding based on how many free places they have. The private, voluntary and independent (PVI) sector receives money depending on how many places children take up. Some see this as unfair. Also, PVI providers say they do not get enough money to pay for the free places. They say it's not fair to use the same criteria to judge everyone in a diverse sector. But local authorities say they have difficulty in getting providers to supply accurate figures.
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