Members of the Champagne Nurseries on Lemonade Funding (CNLF) campaign group wrote to the Competition and Markets Authority (CMA) complaining many childcare providers will be forced to close because the money offered by the government for the 30 hours of care is not enough to cover the true cost.
They claim the government has abused its legislative powers by regulating the childcare market, stating the "price fixing of both the purchase and sales price is an abuse of market control".
From September 2017, the government plans to extend the 15 hours of free childcare it currently funds for all three- and four-year-olds to 30 hours for children of the same age whose parents are in-work.
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