New Woods Children's Centre, which opened in April last year, was built according to Government funding rules for round one children's centres in the grounds of Healdswood Infant School in Skegby, Nottinghamshire, which already has a nursery for three- and four-year-olds.
Under the requirements for round one, the daycare setting had to be physically attached to the school nursery but the free entitlement to nursery education would only go to the school.
A spokesman for Nottinghamshire County Council said, 'We lobbied central Government to say that it would be very difficult for a daycare provider to make the provision economically viable under the circumstances. We showed several providers around, but they all decided that they could not make the sums add up with the NEG element going to the school, so declined to put in a tender bid.'
The Pre-School Learning Alliance has been named as the preferred provider and is likely to take up the tender.
PLAbusiness development manager John Theedom said that it was necessary to trial an under-threes model. He said, 'Of course, the sort of provision that works ideally covers nought to fives, incorporates the NEG, and has no competing partners. But there are increasingly children's centres built on schools, so we're trying to find a solution.'
Mr Theedom added, 'In the case of New Woods we would not just provide nursery provision, we would provide a wider package. Our background is offering a range of services and a lot of childcare providers wouldn't be able to do this.'
Karon Foulkes, senior children's centre manager at Nottinghamshire County Council, said, 'It was difficult to find a provider, but I'm pleased that we've managed to find a workable solution.'