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Falling occupancy levels and chronic underfunding threatens high-quality nursery provision

Under-funding of free early education places and the tough economic climate are threatening sustainability of the nursery sector and the viability of the two-year-olds programme, the National Day Nurseries Association has warned.

The latest NDNA Business Performance Survey, conducted in partnership with Nursery World, has found that circumstances have become more challenging throughout the course of 2012.

Despite increases in quality within the nursery sector, occupancy levels continue to fall. The survey revealed that nurseries have an average occupancy level of 71 per cent, a reduction of 3 percentage points since May 2012, with less than 50 per cent of nurseries expecting to make a profit this year. Forty-three percent of nurseries have taken the step of reducing staff hours in the last six months, compared with 32 per cent in May 2012.

Nurseries continue to report parents reducing their outlay on formal childcare. Sixty-seven percent of nurseries said parents are using more friends and family childcare, 80 per cent of nurseries said they have more part-time children on their books and 52 per cent said more parents are using funded hours only.

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