The Labour-run Borough of Barking and Dagenham is to consider outsourcing its nursery services at a meeting of the council's cabinet next month. Under discussion is a one-off subsidy of £100,000 per nursery to be given to the organisation that takes it on.
The council runs six nurseries in the borough and CYP Now understands the losses are mostly due to the cost of staffing them.
A council spokeswoman said: "The council will continue to secure high-quality childcare to meet the needs of working parents in the borough."
The issue will be discussed at a council meeting on 14 May.
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