MumNWLondon, in the area I work in, the CC nurseries are streets ahead of the private nurseries in terms of standards. There are several rated outstanding where I work (as opposed to 0 private day nurseries).
I'm not particularly sure that it is a fantastic idea to dismantle centres of excellence and/or make them inaccessible to "middle class" people. Again, I have no issue with paying more.. however, surely rather than asking why should government subsidise middle class families to have excellent preschool education, we should ask why government would want to deny excellent preschool education to middle class families because "the nation can't afford it". The CC nurseries I have worked in have been fantastic examples of good early years educational practice: I don't mind paying for this but I really don't see why it's okay to shut a whole group of people out of the only outstanding educational provision within a 20 mile radius because they can 'easily afford' the more expensive provision down the road that is, frankly, pants?
Ideally I feel this good practice should be capitalised upon: make the middle classes pay more and increase capacity for all for nursery education places. Use CC's as centres of excellence and points of contact for a range of services for the entire community by allowing community groups to hire out rooms/run their own services/utilise the skills and enthusiasm of local business people so that the centre becomes self-sustaining. Grant central funding for work with the most needy and to subsidise access to services that require payment for those who need them but cannot afford them.
I can't see how shutting up shop will really be good for anyone. So CC's have been seized upon by the middle classes? Well then, there is a demand for the services - now payment is necessary. Shouldn't impact upon what SS needs to do with its target group to bring in revenue from the middle class cohort.
It obviously can be done as this is the model in our centre: payment for classes for everyone not on benefits at standard market rates. Need should be factored in too, I feel, but there are more creative and sensible solutions vs swingeing cuts.