The government is currently consulting on changes to the funding formula used to calculate local funding awards for free childcare.
Ministers want to overhaul the formula so that areas where costs of providing early years are high receive more funding.
But the Early Years Alliance says this will mean areas with a shortage of spaces, largely in northern regions, will be more adversely affected than areas in the south of England and London, where the availability of places has increased in recent years.
The sector body’s research has found that councils who will be most adversely impacted by the new formula will see their funding rates increase by only around one per cent for both the free childcare offers for two-year-olds as well as for three-to-four-year-olds.
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