Analysis of a recent joint survey carried out by the Early Years Alliance (EYA) and independent sector analysts Ceeda, shows almost two thirds of nurseries and pre-schools (65 per cent) and four in 10 childminders had fewer children taking up free childcare places in January compared with the same time last year.
This drop in uptake of places has left providers struggling after the government withdrew a decision to base funding of places for two, three and four-year-olds on pre-pandemic levels.
The system was used during the summer and autumn of 2020 due to a drop in attendance caused by the Covid-19 pandemic.
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