Market intelligence providers Laing and Buisson, in the Children's Nurseries Market Report 2009, state that 62 per cent of nurseries feel funding for delivering free childcare to three- and four-year-olds does not cover costs. This figure is almost unchanged from 2008, (61.5 per cent) despite authorities completing a cost analysis of the free entitlement in the past year.
Purnima Tanuku, chief executive of the National Day Nurseries Association, said: "We are disappointed that the cost analysis process does not seem to have increased funding to a more sustainable level, and believe this is partly because local authorities still struggle in ensuring enough funding is reaching nurseries."
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