Local authorities Nottinghamshire and Oxfordshire are among those not routinely paying free entitlement funding to settings taking on children from other settings, while other councils, such as North East Lincolnshire, are double funding.
Providers have revealed that they are staying open despite facing losses of thousands of pounds - even with Government incentives designed to encourage them to stay open.
Wiltshire County Council is paying £100 per week per child to incentivise settings to stay open – but taking the money from settings which have closed, resulting in a 60 per cent cut for closed providers in June. Despite earlier statements to the contrary, the ability to redistribute funding has been backed by government after it said on Tuesday that councils could transfer money between settings to create more places.
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