It says that funding must reflect the ‘true cost of childcare in London’.
Providers could close their doors or become 'wholly privately funded' if offering state-subsidised childcare becomes no longer viable, it says, reducing the number of places in London and making childcare ever more expensive.
The Economy Committee has written to Education Secretary Nicky Morgan about the ‘detrimental impact’ that doubling the free childcare entitlement could have on many providers in the capital, who are already facing ‘a significant shortfall in funding’, which is ‘most acute in London, due to its higher property and wage costs’.
Take-up of the current 15-hour entitlement is also lower than the national average among parents in the capital. Take-up of eligible twos is only around 40 per cent in some London boroughs.
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