Early years settings in one London borough will receive a 15 per cent cut to their funding next year to provide free early education places for disadvantaged two-year-olds.

Letters have just gone out to providers in the London borough of Bexley confirming the funding they will receive from April, revealing that Bexley will be reducing the rate it pays settings to provide the free places from the current rate of £6 an hour to £5.09.

Neil Leitch, the chief executive of the Pre-School Learning Alliance, has written to Elizabeth Truss, the education and childcare minister, as a matter of urgency to express his concerns.

Mr Leitch said that Bexley’s figures confirmed his fears about insufficient funding for the two-year-old places and that the Alliance is very concerned that the situation in Bexley could be replicated across the country, leading to a nationwide funding shortfall for two-year-old places.

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