Now, figures obtained by Labour show that in the first year of the scheme's operation two-thirds of local authorities have failed to secure sufficient places. To make matters worse, the research reveals almost half of councils don't expect to have enough places available to meet demand when the scheme is expanded in September.
So what is holding the scheme back? The biggest problem was highlighted by the National Day Nurseries Association in February when it revealed the average price paid by local authorities to childcare providers for delivering places was £1 an hour less than the actual cost of care. In more affluent areas this loss can be offset by charging fee-paying parents more for their childcare, but this option is greatly reduced in deprived communities where the free places are needed most.
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