Early Years Education (Hansard, 8 March 2004)

§ Bob Spink
To ask the Secretary of State for Education and Skills what estimate he has made of the change in the number of private day nurseries in the nursery education grant scheme as a result of the removal of the ring-fencing of the grants to local authorities. [155827]

§ Margaret Hodge
The information is not available in the form requested. Day care figures for 2001 and earlier years for England and Government Office regions were published in DfES Statistical Bulletin 08/01 "Children's Day Care facilities at 31 March 2001", which is available in the Library and on the DfES website, www.dfes.gov.uk/ statistics. Latest childcare statistics were published in a report by OfSTED 'Registered Childcare Providers and Places in England, 19 December 2003', which is available on the OfSTED web-site, www.ofsted.gov.uk/ publications. The numbers of providers and places recorded by OfSTED are not directly comparable with the previous data made available by the DfES because they were collected differently.
The percentage of three and four year olds benefiting from free part-time early education in the private and voluntary sector has increased from 23 per cent. in January 2002 to 32 per cent. in January 2003. Growth in the full day care sector has been particularly strong over 2003–04. In March 387,000 places were available in the sector. By the end of December this had increased by 13 per cent. to 436,000.

§ Bob Spink
To ask the Secretary of State for Education and Skills what research he has conducted into the funding of private providers for the nursery education grant scheme for three and four year olds following removal of the ring-fencing of funds for local authorities; and if he will make a statement. [155830]

§ Margaret Hodge
There has been no specific research of private providers following the consolidation of resources in the under-fives sub-block of their Education Formula Spending Share (EFSS)—the main source of funding for education.
The percentage of three and four year olds benefiting from free part-time early education in the private and voluntary sector in January 2003 was 32 per cent., up from 23 per cent. in January 2002.
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§ Bob Spink
To ask the Secretary of State for Education and Skills what representations he has received from the National Day Nurseries Association on the financial viability of the operation by private providers of the nursery education grant scheme for three and four-year-olds; and if he will make a statement. [R] [155831]

§ Margaret Hodge
While we have not had a direct representation by the NDNA we do have dialogue with the NDNA and other national organisations, through the Large Providers Forum and the Voluntary Sector Forum, on a whole range of issues surrounding early education, including viability.

§ Bob Spink
To ask the Secretary of State for Education and Skills (1) what assessment he has made of the financial viability of the Government's nursery education grant scheme for three and four-year-olds; [R] [155832]
(2) what representations he has received from Essex county council regarding the payment per term passed on by them to private sector providers under the nursery education grant scheme; and if he will take powers to force county council's to pass on to private providers the grain level made available by the Government; [R] [155824]
(3) if the nursery education grant scheme payment per term will be index-linked to inflation; [R] [155825]
(4) if he will make it his policy to reinstate ring-fencing of nursery education grants funds for local authorities. [R] [155829]

§ Margaret Hodge
From April 2003, we have increased local flexibility and autonomy, in line with the Government's principles of reducing ring-fenced funding by consolidating the resources in the under-fives sub-block of Education Formula Spending Share (EFSS)—the main source of funding for education. We have not received representations from Essex regarding funding to private providers. As funding in EFSS is unhypothecated it is the responsibility of the local authority to set funding at a suitable level to reflect local circumstances and in order to meet their statutory obligations. In the financial year 2004–05, overall funding in the under fives sub-block is worth £2.66 billion; overall education funding having increased by 5.5 per cent.
Levels of funding increase every year, taking account of inflation and other pressures. All decisions on future funding will be considered as part of this year's Spending Review.