The 31-place Bonnie Babies Nursery is based at Hertfordshire Social Security Office, although not all the children's parents are DWP employees.
In February, the DWP told nursery manager Bridget Gill that the Hertford office was moving to a new building and the contract with Bonnie Babies would end in August. Ms Gill decided to continue operating independently and asked the letting agents for permission to become a tenant when the DWP lease ended.
Ms Gill applied to the DWP to become their paying tenant for the interim period, but was turned down. At present DWP pays for the nursery space and utilities. A DWP spokesperson told Nursery World the space would be needed for temporary staff relocation.
Ms Gill said, 'The DWP claims it needs the space, but there are already spare offices upstairs. If I can't remain in the building my staff will lose their jobs. Parents will struggle because there is little alternative nursery provision in the area and it is expensive.
'It is ironic that a Government department is closing one of its workplace nurseries at a time when affordable childcare for working families is at the fore of the Government's agenda.'
The DWP spokesman said, 'The nursery was originally intended for DWP staff but its usage has depleted over the years. By the time it closes, only one member of staff will be using the facilities for childcare and it is not cost-effective to keep it open. The nursery manager will be able to discuss the possibility of a new lease with the landlord after the DWP vacates the premises.'
The DWP operates eight workplace nurseries, some of which are run By Bright Horizons Family Solutions. There are no plans to close the other sites.