CHILDCARE companies are refusing to participate in a government scheme to fund an additional 15 free hours per week of childcare amid claims that the proposed £11-per-hour rate is “not viable in its current form”.
Jersey Early Years Association chair Belinda Lewis explained that members of the Jersey Early Years Association have “confirmed unanimously that the rate of £11 per hour, set out in the budget is not viable and they will not be able to participate in the scheme at that rate”.
If the government’s proposed three-year Budget is approved by the States Assembly next. month, 15 hours of free childcare would be offered to all two- and three-year-olds each week during term-time.
Almost £4m has been set aside for the scheme, which equates to £11 per hour per child.
Mrs Lewis claims that this proposed rate does not include any cross-subsidisation for children aged under two. Cross-subsidisation is a common financial practice in childcare settings where the higher costs of caring for babies and toddlers are partially subsidised by fees paid for older children.
“In many ways the level of funding required is not negotiable,” she said. “There is no such thing as cut-price, quality childcare.”
The rate also does not include a margin for reserves, sustainability, investment and profit, she said, adding that the £11 figure fails to take into account inflationary increase in costs, cross-subsidisation, and a “fair margin that reflects a sustainable business model”.
“On that basis, the members represented at Jersey Early Years Association’s meeting on 7 October 2025 confirmed that the scheme is not viable in its current form,” said Mrs Lewis.
“This should not be a surprise to the minister as it was clearly set out in our email to his officers of 6 May 2025 which stated unambiguously the scheme would only be viable if it included a margin for sustainability and cross-subsidisation.”
Mrs Lewis added that Jersey Early Years Association members are “gravely concerned” about the target roll-out date for the scheme of 1 January 2026.
“The Budget is only being debated on 9-11 December, leaving only a seven-day window before many settings close for the Christmas break,” she explained.
“There is a sense that the amount of work required by [childcare] settings is being under-estimated.”
