The preschool only offers 2.5 hours (and yes, I know it's early years education not childcare ) but it is sold as "free care for 3 & 4" year olds
Ah you mean the nursery education grant thing. Yes, it's currently 2.5 hours per day, max of 5 sessions a week, 38 weeks a year.
in fact, it is only free if your child is able to take a place on a day when you are not working (and if you are working full time then not at all).
Depends on your personal circumstances. Some Childminders are registered such that they can provide these Educational Sessions. However the grant may be LESS than the childminders hourly rate, thus childminders who are able to provide it may have decided not to do so given they make a loss.
I suppose that's why people use nurseries
Nurseries would get the same amount of grant as any other providers in your borough/county.
More information about Funded Nursery Education (this document is Surrey County Council branded, so reflects the situation in Surrey)
Parents may well use a nursery because they require full day care, whereas a pre-school only provides care for the 2.5 hours (or sometimes for longer, though there would be a charge for extra time). The entitlement increases to 15 hours a week from September this year I think.
I am very pleased with my CM and the CM cover we have used overall and feel that for my DD it's been a much better choice than nursery.
Nice to hear, though not sure of the relevance. You don't need to use the 'Free Entitlement', you don't need to send your child to preschool.
As your contract with this childminder is such that you will be paying them anyway, why send your DD to preschool?