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Cap on fees could hit training

A 175-a-week cap on the amount nurseries can charge for a full daycare place if they want to access financial support for recruitment and training through the Transformation Fund has raised fears that many settings in the south-east and London could lose out. Following the launch of the Children's Workforce Strategy last week, the DfES confirmed that only nurseries charging 175 or less would be eligible for the 3,000 incentive to recruit graduates and the quality premium of up to 5,000 to improve the qualifications of non-graduates. A DfES spokesman said the cap on fees, which applies nationally, aimed to prevent any impact on affordability.

Following the launch of the Children's Workforce Strategy last week, the DfES confirmed that only nurseries charging 175 or less would be eligible for the 3,000 incentive to recruit graduates and the quality premium of up to 5,000 to improve the qualifications of non-graduates. A DfES spokesman said the cap on fees, which applies nationally, aimed to prevent any impact on affordability.

Purnima Tanuku, chief executive of the National Day Nurseries Association, said nurseries in some areas would have to weigh up whether they could participate.

Given the financial pressures created by large business rate increases, she said, she doubted whether it would be viable for those in and around London to cap their fees. 'It's a bit unfair. It's a bit like the London weighting allowance on jobs. The equation doesn't balance out with the rest of the country, where fees may be lower,' she said.

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