Alliance comments on government childcare announcement

1st June 2015

Commenting on the news that the government is to bring forward plans to extend the free childcare offer for three- and four-year-olds to 30 hours a week, and will initiate a review into funding rates before the summer, Neil Leitch, chief executive of the Pre-school Learning Alliance, said:

“We warmly welcome the news that the government will be launching a formal review into childcare funding rates this year. We have long warned that the existing schemes are significantly underfunded, leaving providers and parents to make up the shortfall. As such, it is very positive to see that the Department for Education is listening to the concerns raised by the Alliance and its members, and is now recognising that inadequate free entitlement funding is a serious problem that must be addressed as a priority.

“That said, as with all things, the devil is in the detail. It is vital that this review is full, thorough and genuinely takes the views and experiences of early years providers into account. Given that the childcare extension plans have been costed at just £350m a year - a figure that our research suggests is around a quarter of what is actually needed - we are concerned that the government is still significantly underestimating the scale of the existing funding shortfall.

“Simply raising funding rates by an arbitrary amount won’t be enough — it is absolutely crucial that the government ensures that the hourly rate of funding actually covers the cost of delivering funded places. Anything less risks destabilising a childcare system that is already struggling to stay afloat. What’s more, there are many practical considerations that must be addressed before the extension comes into effect, such as the restrictions many settings face in terms of capacity and use of premises, and how this will impact on their ability to offer 30 hours of funded provision to eligible families.

“It is all the more vital, then, that the Department for Education engages fully with the sector to gain a true understanding of the current situation and what needs to be done to ensure providers are adequately supported to deliver the extended offer - and we look forward to working with the childcare minister and his team going forward to ensure that this happens.”

For further information or to interview, Neil Leitch, Chief Executive of the Pre-school Learning Alliance please contact:
Shannon Hawthorne
Pre-school Learning Alliance
T: 020 7697 2503
E: Shannon Hawthorne

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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 14,000 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:

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