Nursery owners present MP with funding petition

THE owner of a day nursery in Upper Tysoe, has presented a petition to Stratford-on-Avon MP Nadhim Zahawi, calling for the government to rethink their plans on funding for the 30 hours free childcare.

The Childcare Act 2016 is delivering the government’s election manifesto commitment to giving families where parents are working, an entitlement to 30 hours of free childcare for their three and four-year olds.

Steve Taylor, managing director of Winchcombe Farm Day Nursery, in Shenington Road, collected almost 5,500 signatures from parents and fellow childcare professionals.

Those who signed the petition, support Mr Taylor’s idea to introduce a payment into parents’ Tax Free Childcare Accounts, rather than ’30 hours free childcare’, which is being introduced, in September.

The father-of-five, who opened Winchcombe Farm Day Nursery 13 years ago, said that the government’s flagship childcare policy is so “chronically underfunded” it is likely to put thousands of childcare providers out of business.

Mr Taylor explained that in a recent survey by the National Day Nurseries Association (NDNA), 85 per cent of childcare providers believed the funding did not cover their basic costs.

The same survey also claimed that fewer than half of nurseries will offer 30 hours free childcare from September, as it is “not financially viable”.

He said: “In Warwickshire, private voluntary and independent childcare providers are set to be paid £3.77 per hour by Warwickshire Country Council to care for pre-school children.”

Mr Taylor explained that the cost of providing quality childcare at his nursery costs approximately £5.22 per hour, and he had to make-up the shortfall himself, estimated to be in excess of £50,000 per annum, based on his current register.

He continued: “This makes the business unsustainable and no longer viable. Our meeting with Nadhim was extremely positive and very productive.

“We gave him our petition and also talked to him in detail about the situation we – and very many other childcare providers across the country - find ourselves in.”

Mr Taylor also said: “Nadhim has said he will be raising our concerns with the Secretary of State for Education and will also be contacting Warwickshire County Council to discuss how the money allocated by central government to the county is shared to give the best and fairest rates for all types of providers.”

He was accompanied to the meeting by Linda Findon, chair of Cygnets Education and Childcare Trust, a charity that has three settings, based in Broad Street, Stratford, Alveston, in Tiddington, and Quinton.

Ms Findon explained that they too faced a difficult financial future as the current funding amount, is too little to cover the full cost of providing a place now and is being frozen until 2020, which will “worsen the situation every year”.

She said: “The existing underfunding, relating to the universal 15 hours of free childcare, should have been fully addressed before extending to 30 hours.

“It is not ‘free’ when providers have to subsidise it nor can it be totally flexible; parents have been mis-sold on a government promise, but we are not obliged to keep it.

“At Cygnets and in other settings there is huge concern that quality of provision will be severely impacted as providers try to make the funding stretch. Loss of flexibility could also mean relationships with parents suffer.”

Ms Findon added: “The Early Years National Funding Formula has not been fair for all, as Warwickshire is one of the 20 per cent of authorities that has lost money.

“Cygnets has written to the county to ask for an explanation of how, from what money is available, has it been distributed and made suggestions about more equitable funding.

“Without some adjustment, there will be an insufficiency of places to meet parental demand for the 30-hour scheme in the private voluntary and independent sector, which supplies the vast majority of places in the county.”

Both childcare settings face spiralling costs due to the increase in the national minimum wage, auto-enrolment for pensions, rising utilities costs and Winchcombe Farm Day Nursery has seen a huge rise in their business rates bill this year.

Mr Taylor added: “The simple fact of the matter is that in order for this offer to work it needs to be properly funded and we hope that our meeting with Nadhim as helped highlight the plight of thousands of childcare professionals who are facing a very bleak future.”

Mr Taylor is an avid supporter of campaign group ‘Champagne Nurseries for Lemonade Funding’, which has been established by representatives from the sector and is lobbying government to urgently rethink their plans.

Mr Zahawi said: "I had a very productive meeting with Steve and Linda and I will be raising their concerns with Warwickshire County Council and the Secretary of State."