NURSERIES in Wiltshire say they are struggling to stay open because Government-funded free childcare places for three and four-year-olds do not cover the providers’ costs.


Nurseries in Wiltshire will now be given £4.20 an hour per child to provide 30 hours of weekly care for three and four year-olds, up from £4.16 in 2018.


The 30 hours’ Government-funded childcare is offered to families across England where both parents work at least 16 hours a week.

Nurseries in Wiltshire argued the payment should rise to £4.24 to meet increased business rates and wages.

Last summer 4,116 children accessed the government funded scheme.

John Proctor, early years representative at the council’s School Forum and finance director of South Hill Nurseries group, said: “The sector is now facing significant increased businesses rates. I had one provider that had a 75 per cent increase, wholly paid for by that business. We’ve had the minimum wage increase and whereas the school sector had some contribution, we’ve had nothing.

“Settings now have to pay for the vast majority of their own training because that is no longer available from the local authority.”

The School Forum, made up of head teachers from early years, primary and secondary schools, agreed to raise the rate from £4.16 to £4.20.Alongside these payments, providers get extra income of 92p per hour for deprivation rates the rurality of the county.

Marie Taylor, Wiltshire Council interim head of finance, said: “It is double the increase they had in the last financial year and I think that needs to be seen as positive.

“I do not want to increase this based on a surplus from last year. I do not want to have to then reduce it to £4.18 next year and have them face looking at staffing. It is putting reserves at risk long term.”

Mr Proctor said: “If they had to reduce by 2p the next year at least they’ve had some help There are nurseries who are struggling to pay their rent.” 

A Wiltshire Spokesman said: “The funding rate from the Department for Education for 3 & 4 years olds in early years provision remains unchanged from 2017/18. Despite this we have increased our single funding rate for 3 & 4 year olds to £4.20 for 2019/20 – an increase of 4p per hour on 2018/19.  We also provide additional payments to providers in addition to the base rate to reflect local needs and factors.  These are £0.40 per hour for deprivation and £0.52 per hour for rurality.

“The take up of the 30 hours free entitlement for three to four years olds increased over the academic year from September 2017 to July 2018. The maximum number of children who were accessing the 30 hours free entitlement funding was 4,116 in the summer term.”

Jennifer Morris, owner of BebeTots Nursery in Westbury, said: “We value our staff and want to pay them a good salary but the amount we receive from the scheme is capped. Because of this we have a lot of pressure to put one member of staff in charge of more children whereas we prefer lower ratios. The money has got to come from somewhere so it does have an impact on business.

“We have had to introduce a charge for snacks and meals. We always offered an all-inclusive price but it is now not sustainable with the funding provided from government.”