Funding formula values free nursery places at 2 per hour
Janaki Mahadevan
Thursday, June 9, 2011
Nurseries are receiving as little as 2.05 per hour per child in local authority funding to foot the cost of the free entitlement for early education.
At the opening of the annual National Day Nurseries Association (NDNA) conference, findings of a survey of nurseries from 133 local authorities revealed wide variations in the amount of money councils are handing out through the Early Years Single Funding Formula (EYSFF).
In North Tyneside private nurseries receive just £2.05 an hour compared with the highest rate of £5 per hour in Slough.
The research carried out in April this year also found differences between the amounts handed out to private, voluntary and maintained nurseries. The national average base rate for private nurseries was £3.51 per child per hour compared to £3.55 for voluntary settings and £3.96 for maintained settings.
NDNA chief executive Purnima Tanuku said: "This research has shown the significant variations in the levels of funding nurseries are receiving. A proportion of nurseries are receiving a healthy rate of funding, with possible additional support from various supplements. The lowest base rate we found was £2.05 per child per hour – around the average cost of a pint of milk and a loaf of bread.
"Although a range of supplements may be accessible to settings, in practice they may only add a small amount of additional funding and do not always incentivise and reward quality and flexibility."
Tanuku added that the government's upcoming review of school funding must be an opportunity to improve the way early education is funded.
In her address to delegates to the conference, children's minister Sarah Teather said that having spoken to different settings she was aware the issue of funding was a problem but said it was not going to be possible to provide "substantial additional funding".
"I do know that not everyone's experience of the EYSFF has been universally positive," she said. "Some have very strong relationships with their local authorities others have found consultation very patchy. In some places the system of supplements has worked really well in others it's done nothing.
"I know that some also feel that the level of funding is insufficient, but before the summer break the government will be publishing a consultation on the school funding review, which will include consultation on long-term early years funding. This will allow us to examine carefully how the EYSFF is working on the ground."