Jetgirl - be aware everything has changed as of 1 Sept. The entitlement is as follows:
Up to 15 hrs/ 38 weeks a year. How many actual hrs you are entitled to will depend on what sessions your child does at the nursery. For private nurseries they have to state which sessions (i.e. fixed hrs e.g. 10-12, 13:00 - 16:00) they are setting as funded ones. If your child does part time then even if they are attending more than 15 hrs they might not be attending the funded sessions so ask your nursery which ones they are setting out as the funded ones.
Previously many private nurserys have worked on the practice of taking the money they get from the council for those funded hours and have just deducted it from your overall bill - this is no longer legal from 1 Sept. The problem with this is in the levels of funding the local authorities are giving to the nurseries. Whilst the government claims they are providing 15 free hours for each child, they are not actually funding it and are now expecting the privately owned nurseries to make up the shortfall.
There is also a difference in the way that government supported pre-schools and private nurseries are funded. The pre-schools are funded for a set number of pupils regardless of how many are actually in attendance (e.g. may be funded for 10 pupils but only actually have 5 meaning the money will stretch much further). For private nurseries currently they work on a headcount 3 times a year - the nursery is only paid per term for each child actually present on each of the 3 term headcounts. As of next year they will be chaning this to a single head count in the spring which will further disadvantage the nurseries as a nursery may e.g. have 10 eligible children then which they will recieve the funding for, but by the September term there may be another 5 children now eligible that they won't recieve any money for until the following year.
For example where I live (Windsor & Maidenhead Borough) they only give the nurseries £3.63/hr which does not even cover staffing costs let alone facilities, equipment, activities etc. Previously the nurseries were able to just take that money and get you to top up the difference, now they are not allowed to do this which leaves them with a huge short fall in funding over the year (for the nursery my children attend it will be nearly £30,000). This would obviously bankrupt the nursery if they tried to suck it up themselves so they are now forced to take the decision to remove themselves from the funding scheme (there is no legal obligation for private nurseries to take part in the scheme).
If you have not seen any deduction from your September bill then it may be that your childs nursery has decided to withdraw from the scheme as a result of this shortfall.
The amount of funding provided to the private nurseries varies depending on the borough you are in. Some well funded boroughs have been paying as much as £5.80/hr to the nurseries which is a much more sustainable rate - others such as Windsor and Maidenhead are paying an unsustainable pittance (£3.63). The amount they pay will depend on a number of factors - how much funding they get from the government, how much money they want to keep back for their own administration, budget contingency etc.
The nursery which my children attend held a crisis meeting last night to discuss all this - from discussions they have had with the childrens information service it seems that many other nurseries are as yet unaware of the legal implications of the legislation changes and they expect chaos over the next few weeks as they start to realise what has happened (in our area there has been no official notification of these changes from the borough to the nurseries - the owner of my childrens nursery only became aware of the situation because of her own reading up of the legislation. The net result of these changes is that many private nurseries will either pull out of the scheme altogether, put up prices across the board to make up the losses (which will disadvantage those paying fees for chilren not eligible for the free hours) or will go bankrupt trying to operate underfunded.
I would reccomend having a look at this website which can give some more information: www.freechildcare.org.uk/2010/08/why-is-this-campaign-necessary/