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Average nursery loses £32,000 a year by subsidising 15-hour childcare

Policy & Politics Provision Management Business Funding
Less than 2 per cent of nurseries say the Government funding they receive to provide universal childcare for three-and four-year-olds covers their delivery costs, according to a survey by the National Day Nurseries Association, which also found that closures have risen by 87 per cent.
The NDNA fears that many nurseries already struggling to survive will close amid rising costs PHOTO Adobe Stock
The NDNA fears that many nurseries already struggling to survive will close amid rising costs PHOTO Adobe Stock

The average nursery is losing more than £32,000 a year by providing the universal funded childcare for three-and four-year-olds, according to the NDNA, due to the underfunding of childcare places.

This figure could be doubled for nurseries with children on the 30-hour offer, which is just not sustainable for any business, private or voluntary, the NDNA said.

More than 98 per cent of nurseries are losing money on providing funded hours, up from 95 per cent in September 2021.

Meanwhile, nurseries face an increase in 14 per cent in wage costs from next month, with rises to the national minimum wage and national living wage, according to the research.

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