Low-income parents rely on the childcare element of Working Tax Credit,but many nursery managers believe increasing debts are forcing parentsto spend this money elsewhere.
Lisa Harvey, a nursery manager in Birmingham, said: "If you can't paythe electricity bill they cut you off, but because we're in the caringprofession and try to support families we're not seen as a priority debtfor them."
According to the National Day Nurseries Association (NDNA), parentaldebt is an increasing concern for nurseries, exacerbated by a relianceon tax credit payments.
Purnima Tanuku, chief executive of NDNA, said: "Parents taking a placefor the first time may wait weeks for tax credits to come through,meaning nurseries are left waiting. A number have seen parents removethe child after running up a significant debt."
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