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Commenting, Neil Leitch, chief executive of the Early Years Alliance, said:

"We welcome today's announcement on free entitlement funding as a step in the right direction. However, let us be clear that this on its own, will do little to ease the concerns of thousands of providers who fear closure in twelve months time. 

"For weeks now, we have been calling on the government to provide the urgent transitional funding the sector desperately needs to survive and today's decision, while positive, can be no substitute for that. 

"We urge the government to follow up today's announcement with a commitment to providing the sector with the short-term funding it desperately needs. Without it, the sobering reality is that thousands more nurseries, pre-schools and childminders will face no choice but to close their doors for good."

Editor notes 

• The Early Years Alliance is the largest and most representative early years membership organisation in England. A registered educational charity, it also provides high-quality affordable childcare and education to support children and families in areas of deprivation throughout the country.

• The Alliance represents 14,000 members and supports them to deliver care and learning to more than 800,000 families every year. We deliver family learning projects, offer information and advice, produce specialist publications, run acclaimed training programmes and campaign to influence early years policy and practice.

• The Alliance website is