The report, sent to ministers, welcomes the concept of free nurseryplaces but says the system is blighted by underfunding and overregulation.
Of particular concern is a ban on charging parents a top up contributionto meet the difference in the actual cost of care and funding, which ishaving a devastating affect on nurseries, according to the report. Itsays many nurseries are facing bankruptcy or having to withdraw from thescheme unless the difference is met.
Among the worst affected nurseries are in the South East and Londonwhere costs are higher, with one in East Sussex saying it will lose100,000 a year if the ban on top ups continues.
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