One nursery owner, who has supplied his own alternative economic model, says that the figures would only work if 'children were an unlimited commodity'.
The DfE released the economic modelling last week in response to a Freedom of Information request.
It claims that changes to ratios would allow nurseries to cut fees for parents by as much as 28 per cent and allow nurseries to increase their revenue by more than £200,000 a year.
The figures given in the DfE example are based on an assumption that the nursery is operating at full occupancy with all the places filled on a full-time basis, 39 hours a week, 52 weeks a year, and charges £4 an hour.
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