Can I just add a little thought to this whole Free Entitlement issue.

Parents do not have to claim the Free Entitlement.

I have had, and will have in the future, parents entitled to the childcare element of Working Famiies Tax Credits who need to live on tight budgets. The parents have, at my suggestion, weighed up the two entiltements and have decided that it is easier for them to continue claiming the same amount from WFTC all year round than having to tell the tax office that their childcare costs vary between term and holiday time; so they do not claim Free Entitlement.

I would not want to withdraw from the Free Entitlement as some of my parents are on benefits and need and only have the free hours for their children. But if parents choose not to take Free Entitlment then I get paid my full hourly rate for 3 and 4 year olds.

I'm sure this will give you some food for thought as this makes a good alternative to dropping out of the funding all together.

BMG

But only if you have families claiming Working Families Tax Credit. None of mine do.

However I will be interested to know how many settings actually withdraw from offering the free entitlement, and if so what happens to their businesses in the long term.

Maz

Hmm not sure if my memory is serving me right here or not, but there was a suggestion a couple of years ago, if you pulled out of the funding scheme, then you would not get Ofsteded - and if Ofsted did not come to call then getting insurance could be an issue - but surely Ofsted must see that the welfare standards are met if nothing else, so probably I'm talking a load of twaddle (not for the first time).

None of my parents are in receipt of WTC either, but it may make sense as BMG says for some parents to bypass the NEG afterall it's their right and work their finances out the best way possible weighing up their benefits - nobody would want to see them losing out - not easy to work out I would have thought.

I was talking with my development officer last week. Even if you pull out of the NEG you will still be inspected by Ofsted, and you will still need to engage with your local authority about meeting the welfare standards, improving practice and so on.

Maz

We have a small playgroup locally who have never claimed nursery funding-simply because the children move onto school nursery as soon as they are three. They still have Ofsted inspections.
Linda

I can see what the thought process is here with regard to claiming tax credits etc - two issues in my mind , one being that they can only claim up to 80% of the fees from TC and will have to pay the rest themselves, and the second being the age old one of claims being made and fees not being paid, or discrepancies over hours claimed and used. We all know especially with low income families that when it comes to bill paying time there are those that put thier fees way down at the bottom of the list! At least with the funding it's garanteed income and you don't have to chase the parents for it.

sounds like it was an urban myth! (Thankfully!)

I thought with tax credits the childcare payments were just averaged out across the year?

actually, I would have to say that, in my own experience, it's often those parents with oodles of money that choose not to pay.My ' low income families' tend to be more careful, better at budgeting, and frankly, a damned sight more honest than my well-heeled customers. They often ask to pay weekly, so they know where they are with money.

Incidentally, I had a call last month from the tax bods, asking about two children ( same family) who mum was claiming tax credits for.They left last July, but it seems mum was not only continuing to claim, but had rather inflated the amount she said we charge. Oh yes, and guess what?? NOT one of my 'low-income families' either......she's driving around in a very flashy BMW ( almost brand new.........better for driving them all to the airport for their two foreign holidays each year). I've not had the nerve to tell her that I've been contacted, or that the gent who called commented on how 'interesting' it was to hear that they don't come to us!

I also have had a lot more contact from the Tax Credits officers in the last couple of years - I even got sent a list of parents claimimg and the amounts and was asked to verify them all, and yes there were a few that were inflated price wise and one who had been in for one session and then withdrawn the child 6 months before !