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Fewer than half of the country’s childcare providers are currently planning to sign up to the government’s 30-hour offer, according to a new survey conducted by the Alliance.

 

The Alliance surveyed 1,332 childcare providers in March 2017 about their plans regarding the scheme and just 44% said that they plan to offer the 30-hours, compared to 95% who currently offer the existing 15-hours offer.

 

Six out of 10 providers asked said that the funding rate for the 30-hours does not cover their delivery cost and a quarter of providers said they were likely to close as a result of the offer.

 

Those that said they were expecting the 30-hours offer to have a negative effect on their business were planning a number of steps to limit the damage. Just over half of those asked said that they would increase their fees for additional, non-funded hours and just under half said they would charge extra for goods and services that they have previously offered for free. Four in 10 said that they were planning to restrict the times and days when the funded hours could be used.

 

Neil Leitch, chief executive at the Alliance, said: “With so few providers currently committed to delivering the 30-hours, and so many forced to consider limiting places, raising fees or introducing extra charges in order to remain sustainable, many parents expecting easy access to a ‘free’ 30-hours place in September are likely to be disappointed.”

 

Neil added: “The fact is that the 30-hours offer cannot succeed without adequate investment. Neither parents nor providers should be expected to pay for a promise that the government chose to make.”

 

The full report is available to read online at