Research undertaken by Ceeda suggests that the early years sector is being systematically underfunded with more than two in every five (44%) nurseries, pre-schools and childminders in England are receiving less funding, in real-terms, than they were five years ago.
The studies analysis of official Department for Education figures shows that,after adjusting average funding rates for inflation, 60 local councils in England paid childcare providers less per hour for funded three- and four-year-old places in 2017/18 than in 2013/14.
The report suggests that this reduction has hit disadvantaged children hardest as childcare providers in deprived areas are struggling to stay in business as they have a greater reliance on government funded places.
Neil Leitch, chief executive of the Pre-School Learning Alliance said “In the worst cases, providers who simply cannot make the books balance will be forced to close their doors for good. This isn’t an exaggeration – it’s already happening.”
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