Previously, local councils have come under fire from providers for 'failing' to pass on their full allocation for nursery education places.
They have been accused of top-slicing the nursery education grant to help meet other areas of expenditure.
However, some council officials argue that the difference in levels of funding between the maintained and the private and voluntary sectors is not a result of local authorities being mean with non-local authority provision, but an effect of being hamstrung by central Government policy.
Under current arrangements, local authorities divide their allocation into an individual schools budget (ISB) and a non-individual schools budget (non-ISB), which is used to cover the cost of special needs, behaviour support services and nursery education funding for non-school providers.
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