Northamptonshire County Council has apologised ‘unreservedly’ for underpaying childminders and nurseries by thousands of pounds.
A special scrutiny meeting at the council heard how underpayment and late payment problems went on for two years after a new payment system was installed.
The service also breached personal data regulations by giving out dates of birth, addresses and national insurance numbers of families to strangers.
A spokesman for Northamptonshire CC said: ‘An internal audit has been launched and we’re working with other local authorities to ensure best practice and continued improvements to the payments scheme.
‘To establish better communication with providers, we’ve reinstated the provider representative group and have increased regular communication activity.
‘The council unreservedly apologies for any errors with payments and the inconvenience caused and is continuing to work hard to fully resolve the issues.’