Over half of councils in London have seen, or expect, reductions in two-year-old places as a result of the 30 hours scheme for three- and four-year-olds or the associated Early Years National Funding Formula (EYNFF).
Councils report that it is becoming more cost effective for providers to cater for these older children, who are often less resource-intensive than their two-year-old counterparts, and come with laxer child:staff ratios, extra funding sources such as Early Years Pupil Premium and sometimes higher hourly rates.
Unlike the two-year-olds scheme, which is targeted at the 40 per cent most disadvantaged children of that age in England, the 30 hours is for three- and four-year-old children of working parents who can earn up to £199,999 between them before they become ineligible.
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