Karen Buck, the Labour MP for Regent's Park and Kensington North, told Parliament that Westminster Council had signed up to the Childcare Affordability Programme (Cap) to cut childcare bills but then upped the rent nurseries must pay.
"Westminster Children's Society is now paying £69,000 a year in rent," she said. "The money the government is paying for childcare is pouring down the plughole and back into the council's coffers."
Her concerns were echoed by Denise Burke, head of childcare at the London Development Agency, which runs the Cap scheme. "I am very aware of the issue of rent for nurseries. It has hit in Westminster but we have also heard about it in Kensington and Hammersmith. These increases, even with our subsidy, will not help childcare costs."
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