ANGRY parents are threatening to form an action group to fight a decision which will stop their children going to free nurseries.

Dad Michael Holden, of Rishton, said: "Lancashire County Council is hurting three-year-olds. We must take action."

Families across East Lancashire received letters from the council yesterday, telling them their applications for free nursery places in September had not been successful because they had been over-subscribed countywide.

A county spokesman said they passed every penny of funding they received on to parents.

Mr Holden, of Station Road, Rishton, a governor at St Charles Primary School, said: "I am appalled. The parents affected by this need to take action.

"I'm going to try to set up an action group to fight this. I welcome other parents to join me.

"The council is going to get an extra £6.5m for nursery education, so why can't they redirect some money now to get over the problem.

""This is hurting three-year-olds. Our son Patrick is really keen to get started at nursery school." Mr Holden, a lecturer in higher education, said he and his wife Lise had five children aged from 12 to three, and it would cost £16.75 a week to send Patrick to a private nursery, five mornings a week.

"We already can't afford to take holidays. School meals cost us £1,300 a year alone. We have no disposable income at the end of the week."

His wife Lise wants to train to be a teacher but the couple will have to pay for the degree course because they are not entitled to a discretionary grant.

"They give out a lot of promises about nursery education and then this happens. I pay a lot of tax and National Insurance. Our children should get free nursery education as a right," Mr Holden said.

Another angry parent, Emma Irwin, of St Mary's Drive, Langho, whose daughter Megan attends Little Gems day nursery in Emerald Street, Blackburn, said: "I rely on the vouchers to get Megan her nursery place, otherwise I could just not afford to send her to nursery, which she needs.

"If she does not get a nursery place I would have to give up my job. There is no way I could afford to put her in full-time child care."

Megan is not due to start school until September, 2002. "That means that she could miss out on 12 months of nursery education, which is a lot for any child to miss," said Emma. "The closing date on the application was June 29. I sent the forms away in plenty of time, but I got a letter back saying that because of oversubscription it meant that applications received after May 23 would not be considered."

Lindsay Leaver, officer in charge at Little Gems said: "We were told that it was due to over- subscription and that funding has been reduced.

"Unfortunately, this would mean that Megan would no longer be able to attend our nursery, which is a shame. I think that there will be a few disappointments in other nurseries."

A spokesman for Lancashire County Council said: "The county only receives a limited amount of funding for pre-school nursery places for three-year-olds. However, we believe in passing on every penny of funding to parents."

To do this, they had first issued places on the basis of priority, taking into account need, and then the places were distributed on a first-come first-serve basis.

"The rules are clearly pointed out parents before they make their application, and the June 29 date is simply an administrative cut-off, after which we will not consider applications."