Research commissioned by the Mayor of London and produced by the Family and Childcare Trust said the average price paid by parents of three- and four-year-olds exceeds the average funding that settings receive in 58 per cent of London boroughs, while in 42 per cent of boroughs the funding rate is higher.
The report, ‘Childcare and early education funding in London’, said in those areas where funding is less than parents would pay are more vulnerable to losing money as a result of the extension of the free entitlement, as parents would be paying for less childcare.
The Family and Childcare Trust found that childcare providers in nearly a quarter of London boroughs will see the funding they receive to deliver the 30 hours offer drop by an average of 5 per cent from April this year.
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