Wythall's Wendy House nursery told Kemi Badenoch the hourly childcare rate falls short of real costs, and asked for 'free hours' to be called 'funded'.
The Wendy House Day Nursery in Wythall used a weekend visit from Conservative leader Kemi Badenoch to argue that the hourly rate nurseries are paid for government-funded childcare does not cover what it costs to provide, and that the “free hours” should stop being called free.
The nursery says it welcomed Mrs Badenoch, the Leader of the Opposition, and Laura Trott, the Shadow Education Secretary, ahead of the Conservative Party Conference, which opened in Birmingham on Sunday. Its covering note to us says Bradley Thomas, the local MP, also came. Parents and others joined the discussion, which covered funding, staffing and whether nurseries can stay viable.
Victoria Vann, the nursery’s managing director, says she was “delighted” to host an open conversation about what it is really like to work in early years, “celebrating the incredibly important role that early years providers play in supporting children and families, while also being honest about some of the significant challenges our sector continues to face”.
The gap in the hourly rate
The talk centred on the Working Parent Entitlement and the funded hours. Ms Vann said the nursery backs the scheme, and that many of its own staff use the hours for their children:
“As a setting, we absolutely recognise the value of this support for families. In fact, many members of our own team access the funded hours for their children, and we see first-hand the difference they can make in helping parents manage the cost of childcare and return to, or remain in, employment.”
Her concern is the rate behind it:
“One of our biggest concerns is the difference between the hourly funding received by providers and the actual cost of delivering high-quality early years provision, particularly for children aged three and four.
“Early years provision is about so much more than simply providing a childcare place. Providers must meet the costs of qualified and experienced staff, appropriate staff-to-child ratios, training and professional development, safeguarding, SEND support, nutritious meals, resources and equipment, utilities, insurance, regulatory requirements and the many other costs associated with operating a safe, high-quality setting.
“We want to continue investing in our staff, our environments and, most importantly, the care, learning and development opportunities we provide for our children. However, this has to be financially sustainable.”
She said the problem is not unique to Wythall, citing Department for Education analysis of provider finances which, she says, found just under half of childcare providers reported income that did not fully cover their costs.
A higher hourly rate, she argued, would help parents as well as nurseries:
“If funding more accurately reflected the true cost of delivering high-quality childcare, providers would be in a stronger position to remain sustainable while reducing the financial gap that can ultimately fall to parents through the cost of additional hours and optional services.
“Ultimately, properly funded childcare has the potential to benefit everyone: children receive high-quality early education and care, providers are able to remain sustainable and continue investing in their teams, and parents are better supported to return to work.”
“Funded”, not “free”
The second point the nursery put to the visitors was about wording. Ms Vann said government guidance still calls the places and hours “free”, while the same statutory guidance says the funding is not meant to cover meals, consumables, additional hours or additional services.
“This can understandably create confusion for families. When parents hear the phrase ‘30 hours free childcare’, it is reasonable for them to expect that attending a nursery for those hours will involve no additional costs whatsoever. Yet providers are being asked to deliver high-quality provision while certain everyday elements of childcare are specifically outside the scope of Government funding.
“For this reason, we believe that describing the entitlement as ‘funded childcare’ rather than ‘free childcare’ would provide much greater clarity and transparency for parents and carers.”
She was clear that this was not an attack on the scheme itself: “Our conversation was not about criticising the principle of funded childcare. We strongly support measures that make high-quality Early Years provision more accessible and affordable for families. We simply want to ensure that the system behind those entitlements is sustainable for the providers responsible for delivering them.”
Early Years Voice at the table
Ian Morgan and Katie Simpson from Early Years Voice, which campaigns for early years providers, also joined the discussion, the nursery says.
Ms Vann said: “We hope that our discussions helped provide an insight into both the wonderful work taking place within Early Years settings every day and the very real pressures providers across the country are facing.
“We are incredibly proud to advocate not only for The Wendy House, our children, families and team, but for the wider Early Years Sector. We look forward to seeing how the Government intends to address the challenges raised and support a sustainable, affordable and high-quality Early Years sector for providers, practitioners, children and families alike.”
What it means for you
If your child takes funded hours at a nursery in the district, the funding covers the place itself, not meals, consumables or extra hours, which is why many settings charge for those separately. Ask your nursery for a written breakdown of what the funded hours include and what is optional.
The Wendy House, on Chapel Lane, received its Ofsted report card on 18 August after a July inspection: strong standard in three areas, expected standard in three, safeguarding met. Our round-up of Bromsgrove’s 2026 Ofsted report cards has the detail, and the full report is on the Ofsted site.
The Conservative Party Conference runs at the ICC Birmingham until Wednesday 7 October.
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