CYP Now - Providers fear funding shortfall over free childcare for two-year-olds

Only one in eight early years settings believes it will receive enough funding to cover the cost of providing free places for two-year-olds, a survey by the Pre-school Learning Alliance has found.

The survey of 1,024 childcare settings across England found that two-thirds of childcare providers believe that providing for the additional needs of some children will cost them more than the funding they expect to receive from local authorities for providing 15 hours of free provision for disadvantaged two-year-olds.

Sixty-two per cent of respondents said the money they currently receive to deliver places for three- and four-year-olds does not cover their costs.

Neil Leitch, chief executive of the Pre-school Learning Alliance, said: "It is getting increasingly difficult for many day nurseries and pre-schools to be able to afford to provide the 15 hours a week of free provision because they are losing so much money on the scheme.

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