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Private and voluntary nurseries lose out on nursery funding, new survey finds

Private and voluntary nurseries are continuing to receive on average substantially less funding for free nursery education than nurseries in the maintained sector, research by the National Day Nurseries Association has revealed.

The introduction of the Early Years Single Funding Formula (EYSFF) in April was intended to remove discrepancies in funding between the private, voluntary and maintained sectors.

But NDNA’s survey of nurseries in 133 local authorities in England found that the EYSFF is failing to deliver consistent levels of funding for PVI nurseries and that the ‘base rate’ - the minimum nurseries receive from local authorities for providing free entitlement places -  varies widely throughout the country.

As an overall average, nurseries in the private sector were being paid a base rate of £3.51 per child per hour, compared to £3.55 for voluntary nurseries and £3.96 for maintained settings.  
The lowest base rate was found in North Tyneside, where private nurseries receive just £2.05 an hour compared with the highest base rate found of £5 an hour in Slough.

There are also wide variations between nurseries in neighbouring areas. Nurseries in Leeds, for example, receive a minimum of £3.70 an hour, while those in Bradford receive £4.63 an hour.

Other key findings from the research are:

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