30 hours pre-school funding not enough to cover costs

Forty-eight per cent of early-years providers have had to increase their fees as a result of the 30 hours offer not being enough to cover costs, according to a new survey.

The survey by Alliance and Mumsnet received 1,662 responses from nurseries, pre-schools and childminders in England.

It revealed that forty-two per cent said they had introduced or increased charges for additional goods and services.

Forty-two per cent of these providers have also said that there was a chance they could closed within the next academic year due to the 30 hours offer and underfunding.
 
34 per cent of providers said that they were planning to increase their fees in the next 12 months and 19 per cent said the were planning to introduced additional charges.
 
A separate poll, conducted by Mumsnet on behalf of the Alliance, surveyed 1,143 parents of three- and four-year-old children.
 
The survey found that 45% per cent parents accessing the 30-hours offer had been asked to pay increased fees for non-funded hours since the introduction of the offer.

 
41 per cent of parents said that they have been asked to pay additional charges for goods and services after taking up the offer and
 
30 per cent of parents also said they have had difficulties when renewing their eligibility for the offer online.
 
The findings come just one year after the 30-hours scheme launched across England. Earlier this year, the Treasury Committee criticised the government for using “misleading” figures about funding when defending the scheme and called for funding rates to be increased in line with increasing delivery costs.