A report, Social Enterprise: a childcare solution for London?, by think-tank Capacity, said community nurseries are helping families financially by setting fees below market level, discounting rates for poorer families and sometimes letting parents make part-payment by taking on voluntary jobs.
The nurseries were also praised for providing flexible childcare and providing additional forms of family support, for example, by allowing parents to attend college training or helping with parenting.
The study focused on eight childcare projects including a playgroup, a family centre, a group childcare provider and five community nurseries based in disadvantaged areas of London.
It found childcare projects face constant financial insecurity with the loss of Neighbourhood Nursery Initiative grants and a shortfall in nursery education funding. Other projects have faced large increases in council rent, including the Westminster Children's Society, which had to close one of its settings.
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