Nurseries 'will cut funded places' to meet rising costs

13 March 2 mins read Joe Lepper Early Years

Two in five nurseries are set to reduce the number of government-funded places for three- and four- year-olds to cover rising costs - including minimum wage and national insurance hikes, according to a sector survey.

A plan to improve recruitment and retention is staff is also need to sustain the early years sector, leaders say. Picture: LightfieldStudios/Adobe Stock

Offering the funded entitlement is not financially viable for many providers, according to sector body Early Years Alliance. Picture: Lightfield Studies/AdobeStock

The Early Years Alliance (EYA) poll of more than 1,000 nurseries and childminders, predicts a stalling of the government's expansion of funded places that was initiated by the Conservatives and is being continued by the Labour administration.

“These survey findings should set alarm bells ringing across government,” said Alliance chief executive Neil Leitch, adding: “At a time when ministers are looking to significantly expand the early entitlement scheme, we have a huge proportion of providers warning that the exact opposite is likely, with many forced to limit funded places or opt out of the offers entirely due to unsustainable financial pressures.”

One in six providers responded that they could opt out all together of offering funded places for three- and four-year-olds.

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