Peter Lazenby
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CHILDMINDERS warned today they could go bust if the government does not pay the accepted rate for childcare following the Budget pledge to provide free childcare for working parents.
They said that the going rate for childcare is around £7.50 an hour but that the government pays only £4.66.
And if the promised free childcare for all working parents in England for up to 30 hours a week is at the lower rate they will have to shut down.
Chancellor Jeremy Hunt made the pledge in his Budget this week, revealing that the government will be providing £204 million this year, increasing to £288m in 2024-25, and then increasing year on year to meet rising cost pressures.
But no details of actual payments to childminders were given.
Full-time childminder Ellen Brady, 42, from Bromsgrove in Worcestershire, said that the lack of detail for childminders in the Chancellor’s speech had left “a huge cloud hanging over us.”
Ms Brady said she was already working for less than the minimum wage.
“As far as impact… we’ll just have to wait and see,” she said.
“If the funding rate doesn’t increase enough or we still aren’t allowed to charge a top-up then I’ll have to close — it’s a waiting game now.”
Anna Bainbridge, a childminder from Surrey, accused the government of thinking “they can provide champagne childcare on lemonade funding.”
“I am an outstanding-graded childminder with 34 years’ experience in childcare,” the 50-year-old said.
“I work very hard to please Ofsted and my local authority, there is so much to what I do, and I will give it up before taking a pay cut.”
A statement from Childminding UK said: “Having listened to the Budget, we still don’t know all the details about when measures will be put into place and therefore what impact they will have.
“We do know that extending 30-hours places to those under three will be very welcome for parents.
“But unless funding rates match actual costs of providing the places, more settings, including childminders, will close, creating a bigger shortage of places and preventing parents working.”
