NURSERIES in Wiltshire are struggling to stay open because Government funded free childcare for three and four-year-olds does not cover provider’s costs.

In spite of pleas from the early years sector, Wiltshire Council’s School Forum raised the hourly rate given to nurseries by just 4p per child. Nurseries will now be given £4.20 an hour per child to provide 30 hours of care, up from £4.16 in 2018. The 30 hours Government funded childcare is offered to families across England where both parents work.

Nurseries in Wiltshire argued the payment should rise to £4.24 to meet increased business rates and wages. John Proctor, early years representative at the 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.”

Wiltshire council said a rise to £4.18 would leave enough money in reserves if more children took up the scheme. The forum, made up of heads from early years, primary and secondary schools, agreed to raise the rate from £4.16 to £4.20.

Wiltshire Council gets £4.30 per child per hour from the designated school grant, from which the nurseries are paid £4.20.

Marie Taylor, 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.”