The DfE's latest Pulse survey of early years providers reveals that for 48 per cent of group-based providers and 34 per cent of childminders, their income does not cover their costs.
The survey was carried out in May, and again in July. Each time, over 1,000 providers responded. Their responses have been weighted to provide a snapshot that is representative of the entire sector.
Asked whether they thought the new funding rates coming would make a difference, 39 per cent of group-based providers and 23 per cent of childminders said their profitability would reduce.
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