However, they remain concerned about whether funding levels will be adequate to cover the cost to nurseries of offering the places.
The Pre-School Learning Alliance said that the hourly figure quoted by the minister of £5.09, as the average rate that local authorities will receive for each two-year-old place, was not high enough to cover many providers’ costs.
They also questioned the reference to the Daycare Trust’s survey figure of £4.13 an hour for a two-year-old and said it was misleading because many providers' fees for two-year-olds do not reflect the true cost.
Chief executive Neil Leitch said, ‘We have concerns about the Government’s hourly flat rate of £5.09 as many providers have already told us that the final indicative funding rate of £5.13 in 2014 is far from adequate. A number of providers delivering pilot schemes have argued that the current level does not reflect the true cost incurred in caring for these children, particularly when you consider that many will require specialist care.
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