FSB: Government’s free places threatening to send nurseries under

FSB News Release

PR/2007/92

Issue date: Wednesday December 19 2007

Government’s free places threatening to send nurseries under

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.”

ENDS

Notes to Editors:

1. The average nursery receives £3.64 per child per hour from their Local Authority to provide the free places. Nursery owners say that if they could charge it would be an average of £4.70 per hour – a shortfall of £1.06, even though the average cost to the business of providing the free sessions is £4.69 per hour. This would leave a profit of just 1p.

2. Under the Code of Practice on the Provision of Free Nursery Education Places for 3 and 4 year old children, PVI nurseries have to provide 12 ½ hours per child per week to any parent who wants it. More information can be found at http://www.surestart.gov.uk/publications/?Document=1747. For a copy of the FSB survey summary please contact matthew.jaffa@fsb.org.uk.

3. Small businesses employ 58% of the private sector workforce, contribute over 50% of UK GDP and make up more than 99% of all UK businesses. The FSB is Britain’s biggest business organisation with over 210,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk.

Contacts:

For interviews with FSB Chief Spokesman Stephen Alambritis or other senior FSB personnel please contact the FSB Press Office.

FSB Press Office

Simon Briault: 020 7592 8128 / 07917 628998

Belinda Webb: 020 7592 8121 / 07825 125 695

For regional FSB contacts please go to www.fsb.org.uk/regions