Funding offered to nurseries for extra free childcare hours costs less than a second class stamp
As we know from September the free childcare entitlement is doubling to 30hrs for three and four years olds. The 30hrs free childcare is only for parents who both work.
For childcare providers, the doubling of the entitlement is causing many financial difficulties, with some providers opting out on offering the scheme. The increase in funding being given to providers is being described as being less than the cost of a second class stamp. This small amount falls very short of what it actually costs to offer these free hours.
The funding amount given to providers in the past has never covered the costs of providing the 15hours free childcare and now with the increase to 30hrs, this is only going to make matters worse.
On average local authorities will increase funding for three and fours years olds by 40 per hour making it £4.37 per hour, however providers within the following county’s will see their hourly rate fall below the £4.00 mark.
- East Riding of Yorkshire
- North Somerset
How are childcare providers meant to offer high-quality childcare when they only being offered this tiny amount of funding?. Providers are concerned that they will not be financially sustainable if going ahead and offering this scheme.
What are peoples thoughts on the amount of funding being offered?