THE extension of nursery education to three and four-year-olds is now almost complete, but the policy could force private providers to close, nursery companies claim.

Figures published by the Department for Education yesterday show that 541,700, or 96 per cent, of three-year-olds in England took up a free part-time nursery place last year — up nearly 4 per cent on the previous year. Although the majority of three-year-olds — some 307,800 — attend private and voluntary nurseries, providers say the new funding regime for free places is unworkable because parents are no longer allowed to top up the difference between what the Government pays nurseries and what it actually costs.

As the new rules require nurseries to offer 12½ hours of free nursery education a week for 38 weeks of the year, many providers say that they may either have to close or refuse to take in children who are eligible for the funding.

Purnima Tanuku, chief executive of the National Day Nurseries Association, said that the entitlement to free provision was pushing up demand for places.

“Inadequate funding and a ban on ‘top ups’ means private and voluntary providers are facing an uncertain future,” she said. “If they deliver the entitlement and absorb the losses, they risk bankruptcy, or if they pull out of the scheme parents will face difficult choices about continuity of care for their children.”

Unless the issue of underfunding was addressed, Ms Tanuku said, next year would see a falling number of children able to benefit from a free nursery education.

At present, fee-charging private and voluntary nurseries usually charge between £4 and £5 an hour, but they only get about £3 an hour from the Government.

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