South Tyneside Council failed to pay 11 private nursery owners theirfull January to March funding for the NEG. They were paid 307 perchild, although an agreement had been reached for 518 perchild.
After a campaign by nursery owners they received a further 120per child last week.
One South Shields nursery manager said, 'Other nurseries and I phoned upa number of times in March and they said it was on its way. But on 31March someone from the council let slip that the grant had actually beencut.
'It went from us receiving 518 per child to 307 per child,with no notification at all. They gave us a further 120 per childbecause of that, but I'm still down about 2,000. Every nurseryhas lost money.'
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