The letter, published on 20 February, was timed to coincide with theclose of the Government consultation on the fee proposals. It was signedby the chief executives of the National Day Nurseries Association, theNational Childminding Association, the Pre-school Learning Alliance, theDaycare Trust and 4Children.
They said, 'At a time of considerable policy change, with theintroduction of the Early Years Foundation Stage and a new inspectionframework, the proposals will potentially undermine the sustainabilityof many childcare businesses and cause a number to close. This wouldhave an additional impact of reducing the number of childcare placesavailable and undermining parental choice at a time when the Governmentis encouraging greater flexibility in childcare services.'
The proposals include raising fees for daycare providers from 120to 450 and childminders from 20 to 100 by 2010(News, 21 February 2008).
The letter also raised concerns that future Criminal Records Bureauchecks may not be subsidised, which it said would have a further impacton sustainability. It urged the DCSF to reconsider its proposals 'as amatter of urgency' and to retain consistent subsidies for all childcareproviders.
Steve Alexander, chief executive of the Pre-school Learning Alliance,said, 'It beggars belief that the Government is asking providers toincrease their costs when they are struggling to make ends meet. Ourmembers have told us that they are outraged and want us to lobby ontheir behalf.'
Emma Knights, joint chief executive of the Daycare Trust, said, 'Theseproposals will increase costs to providers at a time when many aresuffering a crisis in sustainability. And higher charges to providerswill mean only one thing to parents - a further rise in the already highcosts of childcare.'