This left "older people with lesser but still serious needs" without any state-funded support, it said.
Critics have called free schools, which are state-funded but privately run, socially divisive and unaccountable.
Some would like to see an end to state-funded Catholic schools, which Catholics guard jealously.
Canada, home of state-funded medical care for all, nonetheless lets entrepreneurs register a business quickly and online.
ECONOMIST: A new report gives governments some facts to ponder
We believe each child, whatever their background, should have access to same opportunities in a state-funded system.
BBC: NEWS | UK | UK Politics | In full: George Osborne speech
Free schools are state-funded schools which are set up by groups of parents, charities or other providers.
It urges the Department for Education to tighten its financial grip on these privately run but state-funded schools.
"The government should avoid moral hazard, " says Kim Joon Kyung, senior economist at the state-funded Korea Development Institute.
And a new national curriculum is planned from 2014, which will apply to state-funded schools that are not academies.
Poor countries might also require assurances that signatories would use their state-funded skills at home rather than moving abroad.
Often overshadowed by the state-funded BBC, ITV is Britain's largest commercial television network.
The goal: to ease the burden on state-funded emergency rooms by giving the poor more access to preventative care.
An international English-language satellite news TV, RT, is state-funded and aims to present "global news from a Russian perspective".
And the Netherlands, where 70% of children attend independent state-funded schools, comes well above average in the OECD's ranking.
The employees are all long-term unemployed people on state-funded work placements, in the hope of finding permanent work afterwards.
Most schools in Flanders are state-funded but church-run (and pretty secular in outlook).
Sweden, admired by Mr Gove for its independent, non-selective, state-funded Free Schools, has had a sticky period in international rankings.
Ministers say that creating more of these independent state-funded schools will drive up standards by giving head teachers more control.
Nationwide today about 1.3 million kids, or 28% of all four-year-olds, attend state-funded pre-K, a leap from 14% in 2002.
Existing telecom operators expressed concern that a state-funded player in the market could distort competition and damage the growth of services.
The UK's rural rollout of fast broadband has been given a boost as the EU competition commissioner approved the state-funded scheme.
But this is in danger of strengthening the suspicion of British voters that the Conservatives cannot be trusted with state-funded services.
Germany's greying argues for encouraging individuals to rely less on state-funded pensions and more on their own savings, as the FDP advocates.
In other state-funded schools, people employed as teachers have to have passed the relevant qualification - known as Qualified Teacher Status (QTS).
BBC: Warning of rise of 'unqualified teachers' in classrooms
Free schools are state-funded schools set up by parents or other groups, with the aim of responding to demand from local parents.
Mahaman Tidjani Alou, a professor of political science at Niamey's state-funded Abdou Moumouni University, argues that there is nothing to worry about.
Academies and free schools are independent, state-funded schools, which receive their funding directly from central government, rather than through a local authority.
St Michael's Catholic Secondary School in Truro is planning to relocate to Camborne and open as a directly state-funded school in September 2012.
As expected, he does not get one of the 50 state-funded places to read law and has to go for his second choice.
The money will cover a visit for a minimum of two pupils and a teacher from each state-funded secondary school, the government says.
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