Research agency Ceeda looked at rates handed by English councils to providers of 30 hours funded childcare places for three- and four-year-olds, and found that 44 per cent are received less in real terms in 2017/18 than in 2013/14.
The area with the biggest decreases is the Isles of Scilly, where there has been a 17 per cent cut in the funding rate. Taking into account inflation providers on the islands received £4.58 per hour for each child in 2017/18, compared with £5.55 in 2013/14.
Others to see a dramatic fall in real terms funding are North Lincolnshire, where funding has fallen 15 per cent from £4.74 to £4.04 over the same period.
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