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“Principles are fine but don’t pay the rent” says Pre-school Learning Alliance as National Audit Office review reveals government departments still missing full cost recovery targets

NEWS RELEASE

14 June 2007

“Principles are fine but don’t pay the rent” says Pre-school Learning Alliance as National Audit Office review reveals government departments still missing full cost recovery targets

Commenting on National Audit Office report, ‘Full Cost Recovery’1 Steve Alexander, Chief Executive of the Alliance, the largest voluntary sector provider of childcare, said:

“it is pretty clear from the National Audit Office’s report backed by the recent Charity Commission report “Stand and Deliver” 2 that the voluntary sector is subsidising government contracts — a situation we consider wholly unacceptable and one which presents a real threat to the sustainability of the sector.

It is extremely disappointing indeed that despite assurances made in 2002 that full cost recovery would be high on the agenda, 5 years later a significant proportion of third sector organisations do not consider they are receiving full cost recovery and not one government department has undertaken a systematic review and changed its funding.

The Alliance accepts the point made in the report that the concept of full cost recovery is useful as a code for fairer funding principles, however we stress that principles do not pay the rent. The Alliance is calling on the office of the Third Sector to undertake a systematic department by department review of how full cost recovery is delivered and suggests that the findings are subsidised by the Compact.”

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. Office Of The Third Sector – Implementation of Full Cost Recovery. A Review By the National Audit Office. June 2007
  2. Stand and deliver. The future for charities providing public services. The Charity Commission. Feb 2007
  3. The Pre-school Learning Alliance is the largest voluntary sector provider of quality affordable childcare and education in England.
  4. 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.
  5. For information about the Pre-school Learning Alliance and the Feeding Young Imaginations campaign, visit our website: www.pre-school.org.uk
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