Probe into nursery cash

Worcestershire County Council confirmed it was looking into claims by concerned parents that The Kindergarten Group had failed to forward funding which it had been given by the Children's Information Service.

The money was part of the Government's Nursery Education Grant, through which money is given to nurseries to help reduce the cost of pre-school education.

The funding, £406 a term for each eligible child, should then be passed on to parents by the nursery in the form of a lump sum or reduced rates.

A county council spokesman today confirmed it was investigating complaints that nursery owner Terry Dutton had failed to forward the money to parents after he received it in early April.

Further payments to the group had been suspended while the claims were being looked into, the spokesman said.

"We take this matter very seriously and will be looking back at payments made so far," he added.

"I hope parents will appreciate we have to move one step at a time, but I would like to reassure them that the situation is being investigated."

On Tuesday, the Evening News revealed Mr Dutton had closed the group's Chedworth Drive nursery until further notice, without giving parents any warning.

Mr Dutton - who also owns nurseries in Green Hill, off London Road, Wakeman Street, in Barbourne, and Lechmere Crescent, in St John's - blamed staff for the indefinite closure when the article appeared.

But he stressed his other nurseries would remain open.

Yesterday, Mr Dutton denied any knowledge of investigations into the claims and rejected the complaints.

He claimed he would be able to prove he had paid the parents. But he said he was too busy to address the issue and clear his name.

"According to my records, I do not owe the parents in question any money," he said. "I have given all the money back."

The council spokesman maintained the Children's Information Service had been in "conversations" with Mr Dutton.