Nursery World - Providers facing real-term funding cut while costs rise

Early years providers are facing a real-term cut in funding to
deliver three and four-year-old places in 2015/16, amid increases to business and running costs.

It has come to light that many local authorities are opting to freeze their rates for the next financial year, which starts on 6 April, while others are increasing their rates by nominal amounts. In some cases, local authorities are dropping their rates.

For example, Devon County Council is increasing its rate by 8p from £3.62 to £3.70 and Torbay from £4 to £4.08. Kent County Council is increasing its rate by just 1p.

Local authorities that have frozen their funding include Lincolnshire County Council and Trafford Council.

A spokesperson for Trafford Council said the funding is remaining the same as 2014/15 because the dedicated schools grant has not increased.

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