It is the sixth year running that the NDNA’s survey has reported on the underfunding issue, which it says the majority of nurseries face on three-and four-year-olds places, while nearly half make losses on the two-year-old offer.
Funding shortfalls are also putting nurseries off from offering more funded places for twos, the report warns.
On average nurseries in England taking part in the Government-funded scheme are losing £712 a year for every two-year-old place.
Currently, 86 per cent of nurseries offer some funded places for twos, but the number of places on offer remains unchanged from last year’s survey, at an average of 11 places at each setting. The average hourly rate for twos is £4.92 in England. Ninety-six per cent of nurseries in England offer places for three- and four-years-olds, receiving an average hourly rate of £3.80.
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