News story

15th January 2001

MP CONDEMNS FUNDING “LOTTERY” FOR PRE-SCHOOLS

Northavon MP Steve Webb has obtained figures from the Government which show that local pre-schools bidding for Government funding had the odds stacked against them from the beginning.   The MP launched his investigation after Marshfield pre-school were refused funding of £25,000 towards the costs of building new pre-school premises as part of the new primary school at Marshfield.   The application was part of a competitive bidding process launched by the Government “to support voluntary pre-schools which are developing new approaches which enhance their longer-term sustainability”.   Now Steve Webb has learned in a Commons written answer that out of 109 bids nationwide, just 17 were successful, and of the £1.7 million bid for, only £250,000 was handed out.   The MP has condemned this process as hugely wasteful of the time and efforts of pre-school staff and volunteers and has called for a reform of the whole bidding system.

 

Steve Webb said:

 

“When pre-schools and other organisations spend time, money and effort bidding for Government funding, they should at least have a realistic chance of success.   In this case however, for every one successful bid there were six unsuccessful bids.   This does not seem like decent odds to me.   It is cruel and demoralising for the Government to run these “fantasy funding” schemes, knowing that the vast majority of applicants will fail.”

 

The MP has argued that on any occasion when the Government invites bids for funding it should first make an estimate of the number and size of bids of the requisite quality which are likely to be submitted.   It should then provide the funding to ensure that a decent percentage of bids which meet the quality standard are successful.   Only in this way would the time-wasting and disappointment of so many failed bids be avoided.

 

** ENDS **

 

Note to editors: The written answer was received on Monday 15th January from education minister Margaret Hodge, in response to a Parliamentary Question tabled by Northavon MP Steve Webb.