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Exclusive: Charging top-up fees is ruled out by Government

The Government will not back down on top-up fees, even if it means providers will opt out of the free entitlement scheme, children's minister Sarah Teather has exclusively revealed this week.

She states in her Nursery World column (see page 12), 'I hope that many providers will continue to choose to be part of the free entitlement scheme, offering a fantastic service to all families. But I accept that, for some, delivering the free entitlement may not fit within their business models and they may decide to opt out.'

Responding to Ms Teather's comments, Neil Leitch, chief executive of the Pre-school Learning Alliance, expressed concern over the minister's 'sense of ambivalence' about the issues around the application of the free entitlement. He said, 'The aim of the free entitlement is one the Alliance fully supports. However, universal free early years entitlement will not be served if confusion around funding issues results in the reduction of free provision available, as this would remove parental choice, particularly from disadvantaged families.

'We urge the minister to be careful not to risk reducing the take-up of the free entitlement from its current high level of 96 per cent.'

Purnima Tanuku, chief executive of the National Day Nurseries Association, said many providers would be disappointed the Government has set out that top-up fees will not be an option. 'Although the Government outlines how it understands that some providers may choose to opt out of the delivery of free places, this will disadvantage families by reducing or even removing their choice. If nurseries pull out, unless they serve highly affluent families they are likely to find families will leave, and it will be difficult to attract new parents to the nursery,' she warned.

Christopher Price, co-owner of Merton Court School in Sidcup, Kent, is calling for the free entitlement to be means-tested. He believes many nurseries in his area will be forced to opt out because staying in would be 'commercial suicide'. He said, 'There's not enough money for universal provision, so many people will have to go without. It's called rationing and is basic economics.'