Government figures published in response to a parliamentary question from shadow children and early years minister Tulip Siddiq show that spending on tax-free childcare over the past three years was just £385m compared with an original forecast of £2.1bn.
The Early Years Alliance has now called on ministers to reallocate the £1.7bn to support “desperate” childcare providers, many of whom face closure due to falling numbers of children taking up places and the cost of making settings Covid-secure.
Neil Leitch, chief executive of the Early Years Alliance, said the pandemic is having a “devastating effect” on providers, many of whom will not survive without urgent action.
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