A key plan to expand free childcare has created fears for many preschools across Gedling Borough.
The huge expansion of free childcare was a main feature of Jeremy Hunt’s budget last week and whilst it is great news for parents it has created further financial worries for early years settings.
Trustee of Arnold St Mary’s Pre-School, Francine Leary, said: “The budget announcement is great for parents.
“More places, more free hours.
“But the Government needs to fix the funding crisis before making promises to parents.”
Many preschools have already shut in recent years and this new plan may lead to the closure of more establishments if there is not an increase in central funding.
Arnold St Mary’s relies on fundraising and volunteers to break even due to funding levels not meeting increasing costs and the addition of free childcare for all would increase this need to raise money to remain open.
Francine added: “The devil is in the detail here, what will the hourly funding increase be and when as we need more investment now?”
The announcement stated that 30 hours a week of free childcare would be given to all children aged from nine months to four years, with a staggered introduction.
Hunt did promise an increase of free hours funding of £204m from this September but this will not cover costs nurseries face.
Currently, settings rely on the fees paid by parents who do not receive funding to cover the underfunding of others but this will no longer be the case.
Francine fears that the changes announced in the Spring Budget may mean that Arnold St Mary’s, which has been around since 1969, “may not be sustainable” to run anymore.
Maxine Payne, manager of Carlton Preschool Playgroup also shared the same worries about balancing the books.
She said: “I think it’s a very good thing for families to be able to return to work but unfortunately I also think it’s quite scary as a preschool manager because the funding rates are not high enough.”
Carlton Preschool Playgroup is also a registered charity that relies on fundraising to buy resources.
Maxine added: “Every September we worry whether we are going to make it through the next year.
“It’s always been a struggle, but it is more now because the funding rates have only gone up by pence in the last few years.
“There needs to be a more substantial rate of increase.”
The sector is struggling and that means that many practitioners are underpaid.
Maxine said: “The staff work really really hard, and they are worth so much more money but unfortunately most of our staff are only on minimum wage.”
The plan to give free childcare to all may implicate workers’ pay and lead to staff in the profession losing their jobs.
Although there are clear benefits to this part of the budget it has also created fear amongst preschools about their survival in the coming years.
