Proposals for means-testing ‘would hit those on low incomes’ - Playgroup price hike blow for struggling parents

Published: 17 September 2010
by JAMIE WELHAM

A MASSIVE rise in childcare fees will hit thousands of parents in Westminster.

City Hall’s children’s services department has set out plans to increase charges for holiday playgroups by more than five times and treble fees for after-school clubs.

The council says the present model is based on “artificially low fees” that is no longer “viable”, saying parents must pay their way in order to target the most vulnerable children.

Opposition leaders and parents have attacked the proposals, saying they will force working parents to give up their jobs.

And it has prompted safety fears over an expansion of “walking bus” services where children will have to walk from school to their nearest playgroup when many are forced to close.

Former chairman of the Marylebone Association Carl Upsall said: “If these figures are correct it is a serious blow for the council’s claims to foster a cohesive community spirit in Westminster. Middle class parents will be used to private play schemes and these costs but this is a serious blow for any parents on lower incomes and will make childcare unaffordable for them.”

Weekly fees for holiday play schemes will increase from £22 to £120 and during school holidays from £8.30 a week to £30 a week when they are introduced in April 2011. Some low-cost places will be available on a means-tested basis.

It is believed to be one of the sharpest service charge hikes of any local authority in Britain and aims to shave off £250,000 from the council’s play service budget over the next 18 months.

The council wrote this week to all play pro­viders and headteachers alerting them to the overhaul. Under the new scheme, some of the nine primary schools which currently provide services will be stripped of their playgroups, with children referred to new smaller groups based at children’s centres across the borough such as the Bayswater Play Project and St John’s Wood Adventure Playground.

Proposals outlined in a consultation document state: “Westminster City Council’s significant subsidy to play provision is no longer sustainable and has distorted the local childcare market. Savings will be achievable if we identify the real demand for childcare and the type of provision which best meets such need, set fees that cover all costs, and target resources more effectively.”

It adds: “The proposed changes focus on the current centre-based play service. It is proposed to target centre- based play resources at centres located strategically across the city to allow most schools to access a local centre. This will result in some currently subsidised school-based play project sites having their subsidy withdrawn.”

Paul Dimoldenberg, leader of the Labour group said: “I think we are going to see a huge amount of opposition to this. As far as I know it is the biggest local authority increase for these kinds of services in history. Essentially it is a straightforward reduction in service that punishes working parents at a time when everyone is digging deep. We will also have children being marched across busy main roads at rush hour because they can no longer play in their local school.”

Nickie Aiken, Westminster Council’s cabinet member for children and young people, said: “For many years Westminster has, in contrast to other councils, heavily subsidised its play services. 

“In the current financial climate this is clearly not sustainable nor is it a sensible use of taxpayers’ money. Those who suggest we can continue with the same old ways without making any changes to how we deliver services simply do not understand the scale of the challenges that local authorities are currently facing. 

“These kind of service reviews are happening up and down the country as councils of all political persuasions try to balance their books. 

“It’s important to stress that no final decisions have been made yet on fee levels and we are now working to channel the money we have to priority areas, so our most vulnerable children and young people are protected. Under our proposals, we will continue to provide after-school and holiday childcare for working parents who may need it and will provide subsidised play places for vulnerable children. Schools will also be encouraged to identify young people who would benefit the most from extended services on offer. 

Providers have until the end of October to respond to the consultation.