The Ofsted outstanding provision, which was set to close last month after Sheffield City Council withdrew its funding, has been rescued by parents who will now run the setting in partnership with staff as a social enterprise.
The withdrawal of funding followed a year-long council review into its early years services in 2012.
Broomhall Under 3s, which operates from within Broomhall Nursery School and is registered for three babies and 16 two- to three-year-olds, re-opened last week under the management of a board of five parent directors.
The day-to-day running of the setting is being handled by former members of staff Jill Wilkinson and Theresa Fletcher, who will act as joint managers.
Ms Fletcher said she is delighted that the centre and the jobs of staff have been saved after learning three years ago that the setting would be closing.
However, she added that a cut in funding means staff have had to take a pay cut and have lost the benefits they received when the setting was run by the council.
The provision has also moved from being open all year to term-time only.
Martha Henocq, member of the board and whose son attends the setting, said, ‘Everyone was distraught at the news that the centre was to close. Broomhall Under 3s has been open for 80 years, and nothing else compares to it in the area.
‘One parent came up with the idea of running it as a social enterprise after hearing about an after school club that operates in the same way.
‘This model has enabled us to continue to provide the same high-quality provision and retain former members of staff, who create a very relaxing and homely environment for the children.’
A council spokesperson said, ‘We are pleased that the provision for under-threes remains at the nursery school, and that the social enterprise have come together to lead this. We would support this model for a range of providers.
‘We wish parents and staff well, and will continue to provide support where the local authority remains a key partner.’
Chrissy Meleady, chief executive of Early Years Equality, said, 'When the council cut funding to community provision it said it would do all in its power to work with those affected. Parents and staff hoped that Sheffield City Council would not go back on its promise. Sadly this has not been the case for some of the long established not-for-profit providers, who continue to struggle as social enterprises.'
