A report by the Early Years Alliance (EYA) says that parents could soon struggle to find childcare places as pre-schools, childminders and nurseries face huge financial losses.
New data modelling, commissioned by early years analysts Ceeda, shows settings are facing huge financial losses as a result of government underfunding and reduced capacity due to the pandemic.
Settings were forced to close on 23 March to all but vulnerable children and those of key workers as the government enforced lockdown measures.
They were able to reopen with social distancing measures in place from 1 June but Ceeda figures show that most providers in England were operating at 37 per cent capacity during the week of 8 June compared with 77 per cent in the same week last year.
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