William Eichler 13 March 2025

Childcare providers warn of cuts to funded places

Childcare providers warn of cuts to funded places image
Image: maxim ibragimov / Shutterstock.com.

Nurseries, preschools and childminders face a ‘perfect storm of challenges’ amid the expansion of the Government's funded childcare scheme, a new survey reveals.

Nearly six in 10 early years settings expect to cut the number of funded places they offer for three- and four-year-olds, or to opt out of offering funded places completely, according to the Early Years Alliance (EYA) survey.

The online survey, which received over 1,100 responses from early years providers, also found nearly all (94%) expect to increase fees for non-funded hours, and 77% expect to introduce or increase charges for extras like nappies, meals and trips.

Neil Leitch, CEO of the EYA, said the survey should ‘set alarm bells ringing across government.’

‘At a time when ministers are looking to significantly expand the early entitlement scheme, we have a huge proportion of providers warning that the exact opposite is likely, with many forced to limit funded places or opt out of the offers entirely due to unsustainable financial pressures.’

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