Research published today by the Pre-school Learning Alliance shows the rate paid by local authorities to childcare providers for delivering free places for pre-school children is on average around 20 per cent lower than the costs incurred for doing so.
The figures show that one hour of free childcare for three- and four-year-olds cost providers on average £4.53 to deliver, 65p per hour more than the average amount paid by local authorities for providing the place. This put the funding gap at 17 per cent nationally and 20 per cent in London, although it rose to 21 per cent when factoring in unpaid staff contributions.
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