NURSERIES could close if the amount of cash Bolton Council pays for ‘free childcare’ is not increased, providers have warned.

The council is changing the way childcare providers are funded. Under the new formula they will receive between £3.64 to £4.35 per hour depending on the outcome of a consultation — but nursery owners say it costs between £5 and £5.50 per hour to provide a good service and all of of the available options put forward by the council will leave them thousands of pounds out of pocket. They warn a third of day care nurseries may have to opt out in providing the free hours, or in the worst case to close.

The Federation of Small Business (FSB) says that under the new contract the money per hour for most nurseries and childcare providers will be less than £4.60.

Tina Knight of Wells House Kindergarten,Stoneclough, said: “We just can’t deliver the high quality services required at these funding levels.

“Bolton Council is effectively asking us to operate at a loss – and that’s not sustainable. We care very much about our children and parents and want to support the 30 hour offer, plus the rights of our employees to have job security, but unfortunately there’s a real danger many nurseries in Bolton will have to close or opt out to survive.”

Maxine Phillips of Jelly Babies Nursery at Little Lever, said:”The money given to local authorities to fund free childcare has fallen.

“This is a national problem with nurseries across the country facing the same issues of funding.

“I will lose between £21.9k to £25.3k a year based on the 15 funded hours as projected by the finance department.

“We offer a good quality education, with lots of enhancements such as French, dancing and other extra curricular activities. How are we supposed to continue to offer this quality provision to children with these funding cuts?”

The Government currently gives councils cash to pay for 15 hours of free childcare — whether that be day nursery or childminder — and in September that goes up to 30 hours a week.

An emergency meeting will be held on Wednesday, February 1, at Bar Lane Bowling Club in Astley Bridge, at 7pm.

FSB spokesman Robert Downes said: “If the council doesn’t address this issue many childcare providers could have no other option but to close. Not only would that be terrible for the local economy, but devastating for working parents who will suddenly find themselves without childcare while they are at work. We urge all parties to get round the table to discuss this, starting with the meeting on Feb 1.”

A council spokesman said: “Following a review of early years funding nationally, the Government has reduced the amount it allocates to Bolton.

“We have to implement a new funding formula within the guidelines as set by Government and are currently in consultation with providers. We recognise, however, that there will be losers in the system and we are looking for ways to manage this process as fairly as possible. A decision will be taken on how the funding is allocated locally once consultation has finished.”