Nurseries are frequently forced to increase costs for food supplies or private clients since the hourly rate they receive is less than the cost of renting the space.
However, providers caution that the cash may not be sufficient to pay expenses and could force them out of business given the sector’s challenges with rising food and energy prices, as well as a labor shortage.
With only a few weeks until the program begins, the majority of providers who planned to give the free hours had not yet received word from their local authority regarding their funding rate, according to a poll conducted by the Early Years Alliance among nearly 1,200 providers.
• Of those that have, 60% of daycare centers and preschools polled stated that the amount they were given would not cover the cost of providing spaces, leaving them short;
• Of those surveyed, 24% indicated that they were extremely or somewhat likely to close within the next year as a result of financial constraints.
