Spending on free childcare in England is set to fall by 8% in real-terms over the next two years.
In England, all three and four-year-olds receive at least 15 hours of free childcare per week, for 38 weeks of the year.Nurseries are set to pass on higher costs to parents or even close because of a substantial real-terms funding cut, early years providers have warned.
Some parents have had to stop sending their children, he said, while others have been cutting down on the number of hours they send them in each week. Two-year-olds in England are also eligible for 15 hours of free childcare under certain circumstances, for example if the family receives universal credit or the child is in foster care.
Christine Farquharson, a senior research economist at the IFS, told the BBC: "The more that childcare providers struggle to make the free entitlement work for them financially on the funding rate the government gives them, the more they have to look at a menu of quite unpalatable options.
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