"After all these years of inaction the government has pledged help for working parents by encouraging the growth of day care and after school provision. Alongside that, to help parent pay for the service if the 'Working Families Tax Credit' (WFTC). Sounds like good news, but there is a catch.

To qualify for WFTC you need to be earning beyond the band for Housing Benefit eligibility. If you are on low income you get no help with childcare costs. Does this make sense??? If you are on a middle band income you may qualify if the childcare costs are low, but if there is no affordable childcare in your area, you may lose out - again!

Despite the Government's pledge to provide low cost day care through the Neighbourhood Nurseries scheme few Local Authorities have met the targets as the money allowed for 'capital costs' - i.e. for premises, are unrealistic.

Yet Day Care is a booming growth industry with large private 'chain' nurseries opening up all over the place. Parents may pay anything from £200 - £300 per week in fees. What are some of the hidden facts behind this?

Premises costs are sky high, especially in inner cities. Venture Capitalists provide the cash for purchase of land or buildings as well as for conversion to nurseries. They seek a return on their investments alongside the company who is providing the service. AT LEAST A THIRD OF FEES PAID BY PARENTS GOES TOWARDS REPAYING VENTURE CAPITALISTS.

Large companies need a management structure including personnel departments, training officers, building surveyors and maintenance workers. Buildings need to be equipped and kept warm; food, play materials and furnishings need to be provided. Glossy brochures and publicity need to be produced. AT LEAST A THIRD OF FEES PAID BY PARENTS GOES TOWARDS THESE ON COSTS.

Lots of staff are needed - one staff for every three babies under two, (where there is highest demand) but slightly less for older children. The new National Day Care Standards LOWERED the level of qualifications needed to care for young children. Wages for staff caring for babies is between £8K - £10K. Young, often inexperienced, staff work long hours in a difficult and demanding job. ONLY A THIRD OF FEES PAID BY PARENTS GOES TOWARDS THE WAGES OF THE CARER.

Parents expect a 'high quality' service for that sort of money and are sold on the clever advertising. Behind the scenes, babies are being 'cared for' by an army of underpaid and under-qualified staff whose dissatisfaction with the job results in high turnover as staff leave and go to work for agencies where they can earn almost half as much again. Agencies for nursery nurses are springing up all over the place and are another growth sector, reflecting similar patterns to what is happening in the health and education sectors. PARENTS ARE PAYING THE PROFITS FOR NURSING AGENCIES AS WELL AS EVERYTHING ELSE!

Little babies have become the object of an exploitative industry in which many are typically, distressed, insecure and poorly cared for. Staff are stressed, leaving in droves and parents are paying through the nose for this." London, England

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