A study by teaching union the National Association of Head Teachers (NAHT) found that more than two thirds of early years providers believe extending free childcare entitlement for three- and four-year-olds from the current 15 hours to 30 hours each week will lead to a reduction in the number of children they can accommodate.
The survey found that the majority of providers of nursery education in schools are not currently receiving enough funding to cover the cost of provision.
Around 80 per cent of providers fund the deficit from the rest of the school budget, something the NAHT said will become increasingly difficult with the other growing pressures on school budgets.
“Many of our members have been telling us for some time that they are running nurseries at a loss, subsidising the nursery budget from the rest of the school budget at a level that is not sustainable in the long term,” a report of the survey findings, An Early Years Place for All, states.
The NAHT, which surveyed almost 800 members, is calling on the government to ensure proper planning and funding ahead of the extension of the childcare offer for three- and four-year-olds.
It is also calling on the government to develop a fair funding formula for providers to ensure there is enough provision to meet demand.
Neil Leitch, chief executive of the Pre-school Learning Alliance, said the findings reinforce concerns raised by the private and voluntary childcare sector about the potential impact of the 30 hours offer.
“As the NAHT report highlights, extending funded childcare hours could result not only in increased costs to parents, but also in a shortage of places, as many providers simply do not have the capacity to double the number of funded hours they offer," he said.
"It’s vital that government resists the temptation to rush out a policy that, while attractive on the surface, is simply unworkable in its current form."
