Department for Education data obtained through a Freedom of Information request submitted by the Early Years Alliance (EYA) shows that the government calculated that a funded early years place for three- and four-year-olds would cost an average of £7.49 per hour by 2020/21.
However, the average rate paid to local authorities for this offer is currently just £4.89, according to independent analysts Ceeda.
This indicates a shortfall of £2.60 per child, per hour for every 30-hour place – or £2,964 over the course of a year, according to the EYA.
Documents seen by the alliance reportedly state that the government expects providers to “move, over time, to full use of statutory staff ratios” to accommodate the shortfall.
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