Press Release

Government’s free places threatening to send nurseries under

19 December 2007

The Federation of Small Businesses (FSB) is warning that the Government is chronically underfunding free nursery places, with private, voluntary and independent (PVI) nurseries threatened with closure.

According to an FSB survey, many PVI nurseries are losing over £1 per hour per child to subsidise Government policy on free nursery care. The FSB is calling on the Government to review and amend the Code of Practice on the Provision of Free Nursery Education Places for 3 and 4 year old children.

The FSB survey showed that not a single nursery owner believed that the Code should remain in its current form.

Colin Willman, FSB Chairman of Education & Training, said:

“It is already clear that the Code of Practice, in its current form, is highly damaging to nurseries.  The provision of free nursery places is a noble one and small businesses support it, yet in its current form the Government is not only hanging itself by its own petard, but wants to hang nursery owners – and by extension nursery children too.

“We must have a post-implementation impact assessment urgently before there are no places for anyone, free or otherwise.”