‘Big question marks’ over nursery places funding

A nursery chain in East Sussex says the funding it receives from the government to care for children of certain age groups covers less than half of what it spends.

From 1 September, working parents in England have been able to access 30 hours of childcare during term time for children aged nine months to four years old.

The government said more than 18,000 new nursery workers have signed up in 2025 thanks to a recruitment campaign and it has invested £8bn into the sector.

But Hopscotch Nurseries in Seaford says a funding shortfall and an increase in food and electricity bills mean many independent nurseries now struggle to offer the pay rates needed to attract and retain top staff.

Philip Ford, managing director of Hopscotch Nurseries, said: “There are big question marks over the sustainability at the moment, particularly over the levels of funding for the older cohort.

“It comes in at around £5.50 per hour for the three and four-year-olds, and we’ve broadly worked out we’re spending around £12.50 per hour, so there’s a significant shortfall there.”

While costs are high, Hopscotch Nurseries, which has seven sites across Sussex, said demand for places was high.

Gemma Sutton, who works in the Seaford branch, said places were booked up until at least 2027.

“We have a lot of parents coming round pregnant and booking ahead of giving birth to make sure they get their place,” said Ms Sutton.

The Department for Education said it was working to ensure nurseries had the staff they needed, with new staff in disadvantaged areas offered a £4,500 tax-free bonus.

A spokesperson said the department had seen the highest increase in the early years workforce on record.

“The rollout would not have been possible without the hard work and dedication of the early years sector, with the latest stats showing tens of thousands more staff already delivering the entitlements and over 9 in 10 families having secured one of their top three preferred providers,” they added.