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Councils report £62m underspend on funded childcare places

1 min read Coronavirus Early Years
The amount underspent by councils on government funded childcare places totals £62m, according to fresh analysis by the National Day Nurseries Association (NDNA).
Experts have warned the underspend could leave settings forced to close. Picture: Adobe Stock
Experts have warned the underspend could leave settings forced to close. Picture: Adobe Stock

The figures are based on a Freedom of Information (FOI) request to local authorities about childcare funding, which almost all (144 out of 149) have responded to.

The total underspend of £62m includes 19 councils underspending by more than £1m each. Of these seven also underspent by a similar amount the previous year. Just under three quarters (74 per cent) of councils underspent their allocation.

The latest figures update analysis released last month by the NDNA, based on responses from 93 councils. The total based on these responses was £55.5m.

The biggest underspend was by Surrey Council, which failed to spend £3.73m of its funding allocation.

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