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Government survey of childcare and early years providers reveals worsening picture for childcare in children’s centres, the threat to sustainability and the resilience of sessional pre schools, says the Pre-school Learning Alliance

NEWS RELEASE

7 August 2008

Government survey of childcare and early years providers reveals worsening picture for childcare in children’s centres, the threat to sustainability and the resilience of sessional pre-schools, says the Pre-school Learning Alliance

Responding to the DCSF commissioned Survey of Childcare and Early Years Providers 2007 undertaken by British Market Research Bureau, Steve Alexander, Chief Executive of the Pre-school Learning Alliance, the largest voluntary provider of childcare in England said,

"As a voluntary sector provider striving to deliver the government's childcare strategy, the Alliance is all too familiar with many of the report's findings. Our overarching concern is that childcare providers are paying the price of inconsistent intervention in the childcare "market".

One of the report's key findings is that the financial situation of full daycare in children's centres, in particular, has worsened. The report confirms that 77% of children's centres are in deprived areas and are expected to operate with sufficient numbers of children to make the childcare sustainable. The Alliance's experience of running such childcare leads us to conclude that there tends to be low take-up of childcare by working parents in these areas. The policy drive of getting parents into work through the provision of childcare has not yet resulted in demand for the large amounts of additional childcare being established in areas of deprivation. This challenges the sustainability of the provision and is a prime example of market interference.

We are also concerned to read in the report that just under half of all full daycare in children's centres is being run by Local Authorities despite guidance saying this should only happen as a last resort after they have failed to engage with partners in the private and voluntary (PVI) sector. This, we believe, is evidence that local authorities are functioning as both market manager and supplier which is surely a conflict of interest.

The pressing issue of sustainability is brought into sharp focus by the findings which also reveal that full daycare in children's centres is least likely to make a profit, with only 7% of providers making a surplus and a worrying 52% making a loss. The picture is described as worsening and supports the Alliance's long-held case for the problem of sustainability to be addressed urgently. This is especially pressing given the ending of start-up funding for neighbourhood nurseries and additional costs from government initiatives such as the drive to up-skill the childcare workforce.

Finally, the Alliance challenges the report's conclusion that sessional care is in decline. We know that sessional pre-schools are actually adapting to meet needs of local families by developing services and thereby becoming full daycare provision. The popularity of this type of provision amongst parents of three year olds who only want to use the free entitlement is clearly shown by the high percentage of income for sessional groups from Local Authority sources. Ongoing demand for sessional care is further evidenced by it showing the greatest improvement in profitability and the least number of vacancies."

ENDS

For further information please contact:

Kate Summerside
Pre-school Learning Alliance
T: 020 7697 2502
Out of hours press calls: 07956 499621
E: Kate Summerside

Notes for Editors:

  1. The Pre-school Learning Alliance is the largest voluntary sector provider of quality affordable childcare and education in England.
  2. Through direct provision and its membership of 15,000 nurseries, sessional pre-schools and parent and toddler groups, the Alliance supports over 800,000 children and their families in England. The Alliance also develops and runs family learning programmes, offers information and advice, runs acclaimed training and accreditation programmes and campaigns to influence early years policy and practice.
  3. For information about the Pre-school Learning Alliance, visit our website: www.pre-school.org.uk
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