As the Conservative party has promised no additional funding for the 15 and 30 hours of childcare, Ceeda warns the funding deficit would rise 'siginficantly'.
It estimates that under the party’s leadership, providers would face an estimated deficit of £571 million in 2020/21 to deliver funded places for two- to- four-year-olds. This deficit rises to an estimated £824 million when cross-subsidies for younger age groups are factored in.
The estimates are based on the assumption that take-up of funded places continues in line with 2019/2020 trends. They take into account the uplift to funding announced in the 2019 Spending Review, which Ceeda says amounts to approximately 0.08p extra per hour from next April.
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