Independent research by Ceeda, billed as the first significant analysis of childcare and funding costs since the extension of free childcare last September, found a shortfall for a range of initiatives, including 30 hours provision for three-and four-year-olds and the two-year-old offer.
The average hourly cost to private, voluntary and independent nurseries and pre-schools of providing funded two-year-olds places was found to be £6.90, compared with an average government funding rate of £5.23 - a shortfall of £1.67 or 32 per cent.
The average hourly cost of providing funded three-and four-year-olds places is £5.08, compared to an average government funding rate of £4.34 - a shortfall of 74p or 17 per cent.
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