The survey by the Pre-School Learning Alliance found just two-thirds ofits members were coping with existing funding and warned rising costsand new initiatives like the Early Years Foundation Stage would make itharder unless funding was increased proportionately.
Steve Alexander, chief executive of the alliance, said the researchshows the current "one-size-fits-all" approach to funding childcaresettings is unable to respond to differing needs and business models."Members offering daycare, particularly those in London, are telling usthey are struggling to meet the costs of accommodating the freeentitlement," he said.
Currently parents of three and four year olds are entitled to 12 hoursof free childcare a week but this is set to rise to 15 hours a week by2010.
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