Patricia Banks runs Piggy Banks Nursery in Farnham, Surrey, which is graded outstanding by Ofsted. She says she has lost £20,000 in the past year because the funding for the free entitlement for threeand four-year-olds does not cover the nursery's costs.
She wrote to Mr Cameron in April expressing her concerns on the planned extension to 15 hours and asking for the Conservatives' views, which she said 'could make or break' her nursery.
The grant from Surrey County Council is currently for £3.78 an hour, but Mrs Banks said that a survey by the council put the true cost of a free entitlement place at more than £6 an hour.
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