Half of the 90 private and voluntary nurseries in Bolton who applied for the first wave of funding to improve access and Early Years Foundation Stage provision were not awarded any of the £1.8m that was available.
Providers claim that the process has been unfair and that the scheme has been used to prop up the sustainability of a select few nurseries.
Bolton Council refused to comment on reports that just three nurseries were awarded £600,000, including £200,000 for one setting to relocate to new premises.
Following a protest meeting organised by the nurseries, Bolton Council last week suspended the grant process pending further investigation.
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