Nurseries in Nottinghamshire said the Government is "setting us up to fail" after Chancellor Jeremy Hunt's announcement to expand free childcare. The move, which will be implemented in 2024, will see 30 hours of free childcare per week for all children aged between nine months and five years old.
Previously, it had only been available to parents of children aged three or four. On Wednesday lunchtime, March 15, the Chancellor announced 30 hours of free childcare for all under-fives from the moment maternity care ends, where eligible.
But nursery owners in Nottinghamshire fear this could 'destabilise their businesses' due to 'the fact that the amount paid from the Government to cover these hours does not meet the provider’s cost of delivery'. Susan Mills, Founder and CEO of Cherubs Nurseries, which owns a number of nurseries across Nottinghamshire, said: "Whilst (the) budget announcement acknowledged the early years sector and pledged support to parents to support with cost, there has been no consideration as to how providers will sustainably be able to provide these.
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"Yet again, the Government has made a promise to parents that the early years sector simply will not be able to deliver on - setting us up to fail, disappoint parents and destabilise the businesses we have worked so hard to build. This is due to the fact that the amount paid from the Government to cover these hours does not meet the provider’s cost of delivery."
Cherubs Nurseries provides services in Mapperley, Ruddington, Kimberley, Longdale and Bulwell. The company also has four nurseries in Mansfield and another in Worksop.
Ms Mills told Nottinghamshire Live that their hourly rate of high standard of early years of care and education is £12.50. The cost of delivery, however, is in the region of £8-10 per hour, per child - depending on whether they are for half day or full day.
She added: "This issue is also compounded by the recruitment crisis, as many of our talented and long-serving staff are choosing to leave the sector in favour of higher-paid and less-pressure jobs. Early years is one of the most highly regulated sectors, and with Ofsted expecting even more than ever before from providers and many supporting and local authority services stretched beyond their capabilities, there are many more issues that need to be properly considered and addressed. A simple blanket approach of offering “free childcare” to more children is not the solution."
On top of this, she raised concerns over the government's use of term "free childcare", adding: "We need to change the narrative that this is free for parents. As the Government-funded hours are only supposed to cover “basic care” providers have to ask for a consumables charge to cover things like food, craft and art supplies, general equipment, staff training and other utilities.
"Parents are often confused and annoyed at having to pay this charge but must understand that providers cannot offer a service at a loss. By doing this, they run the risk of becoming unsustainable and closing.
"This then leads to further closures and even more children out of early years education - which is so beneficial and essential if we are to properly care for and educate the next generation. If the Government met the cost of service delivery, and consulted with providers to understand the true cost, then these hours that the Government promises could be completely free."
She continued: "We stand behind any initiative that encourages people back into work but we’re smart enough to ensure that it is not any the cost of our children’s opportunity, our staff team’s wellbeing and ultimately the future of our nurseries and 30-year established business.”
Emma Rooney, Chief Executive Officer at Childbase Partnership - which owns the Ofsted-rated ‘Outstanding’ Edwalton Day Nursery in Melton Road, Edwalton - said the announcement "raised expectations". Ms Rooney added: "We welcome any initiative that promises more support for parents in accessing quality Early Years care and education.
"Unfortunately, the leaked information in advance of the Budget announcement raised expectations. Like parents in all our nurseries in England we are very disappointed that the much-needed financial support is neither enough nor coming sooner.
"As always, it is the detail in how this funding will be rolled out that will reveal the long-term benefits. As a training provider - through The Childbase Partnership Academy of Excellence – we look forward to hearing more about the proposed ‘Returnships’ for the over fifties."
The reaction comes after Jeremy Hunt told the Commons last week: "I today (Wednesday) announce that in eligible households where all adults are working at least 16 hours, we will introduce 30 hours of free childcare not just for three and four-year-olds, but for every single child over the age of nine months. The 30 hours offer will now start from the moment maternity or paternity leave ends." He said that the package is worth on average £6,500 every year for a family with a two-year-old child using 35 hours of childcare every week and reduces their childcare costs by nearly 60 percent.
Donna Cumberlidge, Chief Officer at the Citizens Advice Nottingham and District, said they welcome the decision, which will support families with 30 hours of free child care a week. She added: "Childcare costs are a significant chunk of a households weekly outgoings so this change will mean working families will have more disposable income.
"Unfortunately the full 30 hours won’t be fully available until September 2025, so our families won’t benefit during the current financial challenges we are seeing across the country. We appreciate an immediate change just isn’t possible as the childcare sector has the big task ahead of recruiting and training any new staff needed ready to increase capacity within their settings.
"This all takes time and money and it’s vital that the childcare sector has all the funding and support it needs in order to prepare for this change. The funding for the childcare sector needs to be clear and charges for services easy to understand for parents.
"Families on Universal Credit will receive the childcare support upfront instead of in arrears is another positive move. This will remove some of the barriers to the upfront cost of returning to work for the first time especially when you get paid in arrears but have to pay for the childcare costs upfront."
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