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Local authorities report £55m underspend on childcare places in lead up to pandemic

2 mins read Coronavirus Early Years
Three-quarters of local education authorities (LEAs) in England failed to spend their full funding allocation for government-funded childcare places, research by the National Day Nurseries Association (NDNA) reveals.
Purnima Tanuku has called for funding to be ringfenced. Picture: NDNA
Purnima Tanuku has called for funding to be ringfenced. Picture: NDNA

A Freedom of Information (FOI) request submitted to all LEAs in England found that 73 per cent of those who responded reported an underspend for 2019/20 - just before the coronavirus pandemic hit the UK. Some 93 LEAs out of 152 responded to the request.

The reported underspend amounted to a total of around £55.5m, the NDNA said.

Just one fifth of councils gave any of their underspent funding, for three and four-year-old places, back to providers, a new report shows.

Almost half of LEAs who had underspent their funding said they rolled it forwards into their reserves and a quarter reported utilising them to offset deficits elsewhere within their schools budget.

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