A survey conducted in March found that out of 131 settings across 47 local authorities, 37 per cent are already involved in delivering funded places for two-year-olds.
Over the next three years, legislation dictates that 40 per cent, or 260,000 two-year-olds, will be entitled to 15 hours of free childcare.
The NDNA survey found that of those currently delivering the offer nearly three-quarters felt they received enough funding to cover their costs, but of the quarter that disagreed, the shortfall in funding ranged between 35p to £4 per hour.
Nearly half of respondents said they had not yet heard from their local authority about plans to expand the number of places for two-year-olds.
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