In an interview with the Sunday Telegraph, ahead of this week's Labour Party conference, the Prime Minister pledged a free nursery place for every two-year-old over the next ten years.
He said giving more choice to women and families would be key to Government policy.
The scheme builds on the current funding of places for 20,000 two-year-olds.
Steve Alexander, chief executive of the Pre-School Learning Alliance, called for a supply-side subsidy for providers. He said the free entitlement for three- and-four-year-olds was 'laudable' but many nurseries struggled to offer free places and meet their running costs.
He said, 'Our concern is that another intervention, unrealistically costed, will place further strain on nurseries already doing all they can, yet struggling, to provide quality childcare at rates that parents can afford.'
The National Day Nurseries Association said it was vital the problems were resolved before making more free childcare available. Chief executive Purnima Tanuku said, 'Although measures are currently being put into place to help resolve some issues with funded places, we will not see real change until 2011 at the earliest. Many nurseries are struggling to subsidise the loss they currently make and if an entitlement for two-year-olds is not properly funded, there could be repercussions for the survival of nurseries.'
