Last week, a survey by campaign group Pregnant Then Screwed revealed that thousands of parents using the Tax-Free childcare scheme - the same system that parents use to get their code for a funded place - were unable to access their code to give to their childcare provider.
Eligible parents have been able to apply for a code for a funded two-year-old place since 1 January for a 1 April start.
The Department of Education (DfE) confirmed that a pre-existing feature in the system, where parents re-confirm their eligibility every three months, is impacting a ‘minority of parents when combined with a small number of providers who are asking for codes much earlier than April’.
The temporary fix will ensure that parents who cannot reconfirm online until the second half of February or March, will automatically receive a letter with a code from HMRC before the middle of February, ‘without needing to take any action’.
Purnima Tanuku, chief executive of National Day Nurseries Association (NDNA) said that it is a ‘relief’ that the DfE is putting in a temporary fix for this reconfirmation of codes issue to make sure parents do not miss out on their place.
However, she added, ‘We are concerned that this is so last minute for parents and providers who are also in the dark about their funding rates.
‘This temporary fix although welcome will put another layer of potential confusion on an already baffling system. We also need to make sure this problem is fixed before September.’
Joeli Brearley, chief executive and founder of Pregnant Then Screwed, commented, ‘The roll out of the new childcare benefit was causing a number of big issues for parents and providers. We are pleased to say that the DfE has now fixed some of these problems - which shows what is possible when parents mobilise - we have become a force to be reckoned with.
‘However, there are still a number of challenges ahead with the roll out of this new scheme.
The Early Years Alliance welcomed the ‘belated’ announcement of the workaround, empathising with parents who faced the prospect of not receiving their funded entitlement eligibility codes in time to secure places.
Chief executive Neil Leitch said that it is ‘crucial’ that this new solution ‘works in practice, and that parents are able to apply for places – and providers can receive funding for those places – in a timely manner’.
But he warned that fixing eligibility codes as ‘only part of the problem’.
Meghan Meek-O'Connor, senior policy advisor at Save the Children UK, said, ‘Not only are we furious that the roll-out is in jeopardy but all along we have said that the UK Government simply hasn't put enough money into this scheme.
Funding rates for providers
Meanwhile, the sector is urging local authorities to decide on their funding base rates and communicate that as quickly as possible to providers.
Local authorities officially have until 31 March to inform providers how much funding they will receive to deliver the extended entitlement.