Buffer Bear nursery, which employs 18 staff and provides childcare for 86 children in the grounds of Selby Community Primary School, has had several funding streams withdrawn over the past year.
Until July the nursery was taking part in a pilot project established by North Yorkshire County Council, which offered parents of two-year-olds 7.5 hours of free childcare a week at Buffer Bear.
However, the council halted the scheme after only a year when it was given funding by the DCSF to provide free childcare for two-year-olds. The Government's version of the free childcare scheme, which is in a pilot stage ahead of plans to introduce it nationally, has tighter criteria linked to economic disadvantage.
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