Call to tackle lack of nursery places

Tony Blair's claims to be transforming Britain's childcare were undermined today when two new reports found that huge numbers of parents cannot find or afford nursery or childminder places.

The Commons Public Accounts Committee called on the Government to tackle patchy levels of pre-school provision, while another survey showed that sending children to boarding school was cheaper than hiring a nanny.

The Prime Minister is set to use his monthly press conference today to highlight his third-term vision of better childcare for all. Education Secretary Charles Clarke will unveil fresh proposals to tackle the issue tomorrow.

The Commons report praised moves to use tax credits to encourage poorer parents to use childcare and get back into work, but pointed out that the whole policy was being undermined by a lack of affordable nursery places.

It said: "Support which increases demand for childcare places needs to be balancedby sufficient increased supply to help control the price."

The committee said that public funding should only be awarded to well-run operations with a "realistic business plan". The Government wants to create further places for 280,000 children under five by 2006.

A survey by the Boarding School Association found that private school parents are increasingly sending their sons and daughters away on a weekly boarding basis.

With children working longer hours for exam results, many parents consider too much time is wasted travelling to and from school each day. Boarding school fees average ?18,000 a year, but the main alternative for working parents - a live-in nanny - can cost even more.

Last year, the average cost rose by 15 per cent to ?21,000 in central London and ?15,000 in rural areas.