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London nurseries cannot meet costs

Early Years
Nearly half of private nurseries in one London borough are unable to offer the free childcare entitlement, a survey has shown.

The study in the borough of Merton showed nearly half (48 per cent) of private and voluntary childcare providers either charge parents so-called top-up fees or reduce their own fees.

Charging parents top-up fees is forbidden under the government's code of practice on the free entitlement, which states that local authorities must guarantee a free place to all eligible children.

Free childcare for three- and four-year-olds, currently for 12 hours a week but set to be extended to 15 hours by 2010, is funded by the government's nursery education grant. However, providers say this does not meet the cost of delivering childcare and they must charge top-ups to cover costs.

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