CHILDCARE providers in Cornwall have described the Government’s extension of free hours for younger children as “unviable” and “frustrating”.

A keystone of Chancellor Jeremy Hunt’s Spring budget yesterday was the announcement that working families would be able to receive 30 hours of free childcare for children over the age of nine months: currently, the 30 free hours is for children aged three and four.

On the face of it the £4-billion investment, aimed at helping parents go back to work and boosting the economy, should be a win-win for families wishing to take it up, and for economic growth. Average full-time childcare costs for a two-year-old in the UK are in the region of £250 or more a week. Alongside the free childcare hours come further types of support for working parents, including childcare costs for those on Universal Credit to be paid upfront rather than in arrears, increasing the childcare cap for those on UC, and extending the wraparound care provided by schools.

The changes are set to be phased in during 2024 and 2025 and it’s estimated that some 60,000 free places will be needed by 2027. The Government says that it will relax the rules on staff to child ratios and provide incentives to those starting a career in childcare, in order to facilitate the transition. But childcare providers in Cornwall say that the sector is already struggling with a recruitment and retention crisis, and that the payments currently given to providers to fund the existing free places for three and four year olds are not enough.

The Institute for Fiscal Studies has warned that the change will mean Westminster is effectively setting the price of 80% of pre-school childcare in England, and if the funding is too low, it could lead to providers opting out of delivering the new free places or quitting the sector entirely.

In North Cornwall, Dominic Walford of Sticky Fingers Nursery has lashed out at the free childcare announcement, saying there has been no consultation.

“What they are offering in payment does not even cover the wages let alone all our bills and other expenses,” he said.

“As a provider, due to its lack of viability, we not be offering this unfortunately to our customers.”

Minibugs Nursery has branches in Liskeard and St Austell as well as two settings upcountry in Sheffield and Halifax.

Manager Marina Guido said: “Whilst we wholeheartedly welcome this additional support for parents, we are left frustrated and disappointed that the fundamental issues faced by our sector do not appear to have been addressed. We are facing an extremely difficult period with regards to substantial increases in running costs without an adequate increase in current funding rates for 3 and 4 year olds. We are also experiencing extreme staff shortages due to many leaving the sector, usually for better paid work, which has been the driving factor in many nurseries closing.

“At Minibugs we strive to pay our incredibly hard working staff fairly whilst making the decision to support parents during the current financial crisis by freezing fees for this year. This is impossible to balance with the level of government support currently offered.

“Additional funded hours will only heighten these problems unless the rates paid by the Local Authority for funded hours match what’s required to address these key issues. We also fear that parents will be left disappointed as additional hours simply won’t be available in practice.

“We are encouraged by the budget’s focus on supporting working parents, however it appears the core issues have been overlooked and the impact will not be as expected until they are addressed.”

Are you a working parent? Do you welcome the budget announcement? Are you a childcare provider, nursery worker or childminder – what do you think?

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