The Professional Association for Childcare and Early Years (PACEY) welcomes the Budget proposals to provide financial assistance with childcare costs to more working parents, by broadening the scope of the employer supported voucher scheme.

Alongside tackling childcare costs for working families, PACEY believes Government must address the sustainability of childcare services, for example ensuring the full cost of delivering the free early education entitlement is reimbursed to registered providers.

Our research shows time and again that childcare providers are struggling to deliver high quality services for children within current funding levels.

One impact is that many childminders and nursery workers are receiving the minimum wage or less for doing what most families would consider to be one of the most important jobs - ensuring their child's safety and wellbeing.

The measures Government proposed in its recent More Great Childcare report such as increasing ratios, introducing childminding agencies will not reduce costs for parents. This, coupled with proposals to require staff to hold higher qualification levels, could threaten the sustainability of many childcare services. So greater financial assistance to parents and to providers is critical.