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Providers fund one out of every five free places

Provision Funding
PVI providers are being left with more than a £400 shortfall in funding per child per year under the free entitlement, show new figures.

Independent research commissioned by the Pre-School Learning Alliance (PLA) reveals that the average hourly cost of providing a funded place for a three- and four-year-old is £4.53, compared to an average funding rate of £3.88.

This is a funding shortfall of 18 per cent, rising to 21 per cent when the cost of unpaid staff hours is taken into account, the equivalent of £425 per child per year.

For two year-olds, the average hourly costs of providing a place is £5.97, compared to an average funding rate of £5.19, a funding shortfall of 15 per cent. This rises to 18 per cent when taking into account the cost of unpaid staff hours or £470 per child per year.

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