The Children Act 1989 was introduced into a context of early years pro
vision which was characterized by a structural and conceptual divide b
etween 'day care' services, provided by Social Services Departments, a
nd pre-school educational services, provided by Education Departments.
The Children Act 1989 includes day care within the range of 'family s
upport services' to be provided for children 'in need' and, although i
t requires collaboration between various agencies and departments, the
structural and conceptual divide between the two systems of services
remains. The Act also introduces a new regulatory regime for general d
ay care services. This paper describes how two key aspects of the Act,
in relation to day care services, have been implemented by local auth
orities: the duty placed on local authorities to provide for children
'in need', and the duty to regulate services in general use in the pri
vate and voluntary sectors. In doing so, it highlights how some of the
problems emerging from implementation relate to the structural and co
nceptual divide between education and care that is perpetuated in the
Act, and to the tensions inherent in attempting to regulate the growin
g private market in day care. The authors assert that the Act is essen
tially conservative in leaving assumptions that underlie early years p
olicy unchallenged. It is argued that the Act consolidates the welfare
role of day care and that the regulation of general services included
within this model makes more acute the tensions between allowing the
free operation of the market and attempting to promote quality. In the
light of this, the authors question the combination of the two duties
within the same, essentially welfare orientated, legislation. They co
nclude by offering some alternative models for an integrated early chi
ldhood service.