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Funding formula fails nurseries as losses rise

1 min read Early Years Nurseries
Rising costs coupled with reduced funding are putting nurseries under increasing strain as they try to lighten the financial burden of childcare for low to middle-income families.

The National Day Nursery Association (NDNA) has said hidden problems with the administration of the Early Years Single Funding Formula (EYSFF) and cuts to funding for early years professionals (EYPs) has left nurseries reeling as they try to freeze or keep costs low for parents.

Heavy losses

According to NDNA research, settings are losing an average of 98 pence per child per hour in funding because of the formula, which equates to a £22,000 loss for a nursery with 40 children.

Purnima Tanuku, NDNA chief executive said: "NDNA is concerned that providers in some areas are reporting that the EYSFF has not produced a rate more reflective of costs and in some cases providers are actually facing a decrease," she said. "NDNA is urging nurseries to work with their local authority to ensure that they can understand what the new early intervention grant contains and apply for support."

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