A survey of more than 1,600 nurseries, pre-schools and childminders by the Pre-school Learning Alliance found 42 per cent of respondents said there was a chance they would have to close their setting in the next academic year due to government underfunding.
In particular they blamed the impact of the 30 hours childcare initiative, introduced in September 2017, whereby the government subsidises up to 30 hours a week of childcare for three- and four-year-olds, as well as disadvantaged two-year-olds.
The sector has warned that the rate government gives to providers is too little to cover the cost of providing places.
According to Ofsted figures, there were 41,700 childminders registered with the inspection agency as of March 2018, and 27,200 childcare providers on non-domestic premises, totalling 68,900.
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