The Childcare and Early Years Providers Survey 2007, commissioned by the Department for Children, Schools and Families to give a picture of chidcare provision, found 77 per cent of children's centres were in deprived areas.
Steve Alexander, chief executive of the Pre-School Learning Alliance, said: "There tends to be low take-up of childcare by working parents in these areas. The policy drive of getting parents into work through the provision of childcare has not yet resulted in demand for the large amounts of additional childcare being established in areas of deprivation. This challenges the sustainability of the provision and is a prime example of market interference."
The survey also found just under half of full daycare in children's centres was being run by local authorities - despite guidance saying this should only happen as a last resort if there was no private or voluntary sector provider available.
"This, we believe, is evidence local authorities are functioning both as market manager and supplier, which is surely a conflict of interest," Alexander said.
The alliance also challenged the finding that sessional daycare is declining.
"The popularity of this type of provision among parents of three-year-olds who only want to use the free entitlement is clearly shown by the high percentage of income for sessional groups," Alexander said.
