According to the Department of Health, as a result of some milk suppliers who act as 'middlemen' for nurseries claiming double the amount of money they should, the total cost of the scheme rose by almost double the figure in 2007. Based on this, the Department of Health estimated that the cost of the scheme could escalate to £76m by 2016.
Currently 1.5 million children under five, who attend a nursery or childminder setting at least two hours a day in England, Scotland and Wales, receive 189ml of milk for free under the scheme.
In order to join the scheme, which covers 55,000 childcare settings, providers must complete an application form on the Nursery Milk Reimbursement Unit (NMRU) website. Once an application has been approved by the NMRU, providers receive a confirmation letter with a unique account number and claim form.
The nursery milk consultation, which closed on 23 October 2012, proposed three cost-cutting options. They were to cap the price that can be claimed for milk, issue e-voucher cards for providers credited with a monthly payment and supply and deliver milk under a central contract.
However, the School and Nursery Milk Alliance has raised fears that the Department of Health's proposals could negatively impact upon the number of children receiving their free milk because of the added administrative burden childcare staff would face if the plans go ahead.
Nearly six months since the consultation closed, the childcare sector and milk suppliers are still awaiting a response. When Nursery World contacted the Department of Health, a spokesperson said that a response is due shortly.