To consider a report on the different funding arrangements of 3 and 4 year old places in Local Authority Nurseries and in Private and Voluntary Settings. 

George Salmon presented a report which compared funding (and other) arrangements for places for three and four year olds, in Local Authorities, and Private and Voluntary Settings.  He highlighted the following essential differences:

George Salmon said that the Council acknowledged these differences, and said that it was debatable which arrangement was the most favourable.  He advised that any changes might risk detriment to one of the sectors, and he sought members' views on the matter.  Members made the following points in discussion:

·                     In response to a question, George Salmon said that the school set-up was dictated by statute, and that schools could not refuse to provide a place if asked.  This meant that schools could fill a place at any time during the year. 

·                     Sue Peasgood explained that all LA nurseries were under continuous review to keep spending on places to a minimum, and that staff redundancies did happen in LA nurseries.

·                     One nursery provider felt that the arrangements discriminated against private and voluntary sector providers because of the bureaucracy surrounding place provision.  She said that her establishment often had to make places available at short notice, and the current arrangement meant that this was a difficult process.  She highlighted the apparent discrepancy in accountability, saying that private and voluntary providers were immediately accountable for every place, and LA providers were not.  George Salmon explained that Nursery Education funding was public money, and as such, needed to be fully accounted for and subject to stringent audit processes.  He acknowledged that there was sometimes pressure on private and voluntary sectors to adhere to the necessary measures. He added that Central Government dictated some of the processes.

·                     One issue which needed to be addressed was the misconception amongst parents that they could split their free provision between different nurseries.  In general, LA nurseries could not allow for this practice.

·                     Members felt that there was merit in forming a working group to list all of the issues involved in funding arrangements, and their implications.  It would then make proposals on how to address some of the perceived inequalities.  The group would take account of additional factors, such as the falling numbers of children in the county. 

AGREED:       that a Nursery Education Fund Working Group be established, involving stakeholders, in consultation with Ros Hatherill and George Salmon, to review the funding arrangements for LA, private and voluntary sector childcare settings, and make recommendations to address any inequalities.