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I am writing a dissertation on the benefits of circle time in the foundation stage in developing PSE skills. I can't find any reading on the history of circle time.

There is a little on the history of Circle Time in both her books "Quality Circle Time" and "More Quality Circle TIme". In addition to this, Jenny has supervised many Masters dissertations through the School of Education, University of Bristol. You might be able to search for some of these through inter-library loan. We have also put some of the abstracts onto this website in the section "Research and Reports" subsection "Formal Research". Look in particular at Marilyn Tew's as the whole dissertation is on there with some excellent discussion and references. Also, if you are considering an inter-library loan, try Caroline Mann's dissertation which also discusses this area well. The abstract for this dissertation is also on the "Formal Research" subsection.