News

Councils creating funding cashflow problems for early years settings as hundreds close their doors

New research suggests councils are creating additional funding cashflow problems for early years providers, while at the same time, nurseries are being forced to close in their hundreds.
Responses to NDNA Scotland's FOI revealed nearly a fifth of councils will not be increasing funding rates for providers for the autumn term
New research by NDNA suggests many councils pay funding to providers in arrears rather than upfront, PHOTO: Adobe Stock

An investigation into local authority provider payments by the National Day Nurseries Association (NDNA), reveals of the 66 councils that responded to a Freedom of Information (FOI) request and pay providers monthly and/or offer a choice, just 5 per cent pay providers upfront. The remaining 56 councils that responded, pay providers in arrears, and of these, 45 per cent don’t make payments until week three or week four of the month.

The NDNA sent a FOI request to 151 local authorities in England asking if they paid early education and care providers on a monthly or termly basis for the funded childcare offer. A total of 122 councils responded.

Register now to continue reading

Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:

What's included

  • Free access to 4 subscriber-only articles per month

  • Unlimited access to news and opinion

  • Email newsletter providing activity ideas, best practice and breaking news

Register

Already have an account? Sign in here



Nursery World Jobs

Deputy Play Manager

Camden, Swiss Cottage, London (Greater)

Early Years Adviser

Sutton, London (Greater)

Nursery Manager

Norwich, Norfolk