The Pre-school Learning Alliance survey found that just 44 per cent plan to deliver the scheme, which is rolled out nationwide this September, compared with the 95 per cent that offer the existing 15 hours of free entitlement.
A chief concern raised is that the funding on offer by the government to deliver the extra hours is not enough. Nearly six out of 10 (58.3 per cent) respondents said the funding on offer does not cover the cost of delivery and a similar proportion (60.8 per cent) believe the flagship government policy will have a negative financial impact on their business, according to the 1,332 providers surveyed.
Meanwhile, a quarter (25.3 per cent) believe it is likely that if they offered 30 hours of free childcare they would be forced to close. Among those with financial concerns around the initiative, more than half (53.1 per cent) plan to pass the shortfall on to families through a fee hike for additional hours.
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