Magazine article Public Finance

Free Child Care Threatens Private Places, CBI Warns

Magazine article Public Finance

Free Child Care Threatens Private Places, CBI Warns

Article excerpt

The government s pledge to provide young children with free child care could squeeze private and voluntary sector providers out of the market, business leaders are warning.

A CBI report Children first: the power of choice in children's services, published on February 3, said that heavily subsidised state provision could make it uneconomic for other providers to operate, leading to an overall decline in the number of places.

Turnover and closure rates of childcare places are already high, but the CBI believes this will be exacerbated without clear leadership from government on how the market should be developed.

John Cridland, CBI deputy director general, said: 'Without a level playing field that allows all providers, regardless of sector, to offer their proposals and services, reforms won't work. …

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