Most local authorities have yet to tell providers how much they will receive for funded places, raising doubts over how many settings will be able to offer the entitlements.
- Question marks remain over the successful roll out of the Government's extended hours as early years providers await funding rates before committing to the scheme.
- The Government has dismissed any concerns with the roll-out, reassuring parents they will get a funded place.
- Some early years providers are withdrawing all funded places or planning on only offering places for twos and under due to underfunding of three- and four-year-olds.
With the Government’s expanded childcare scheme spinning into ‘chaos’, just months ahead of the roll-out of the first phase, early years providers have been warned that signing up to offer the places would be ‘financial suicide’.
The policy, which is due to be phased in from April, has been subject to criticism since it was first announced last April by the Chancellor, with sector organisations warning the expansion will be ‘just a pipe dream’ and it will ‘fail before it gets going’ without further Government action. Doubts were also raised over the short amount of time to prepare for the expansion through building the workforce and capacity.