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Commenting, Neil Leitch, chief executive at the Early Years Alliance, said: “It is clear that the early years funding system is not fit-for-purpose, and today’s IFS research reiterates our view that any changes to ratios will do little to reduce costs for those who need it most.

“In the results of our ratios survey, which have been released today, the majority of nurseries and pre-schools surveyed said any changes would fail to significantly financially benefit their settings, once again highlighting that the government has failed to grasp the needs of both providers and parents when tackling the cost-of-living crisis. Instead, changes will heap unnecessary pressure on early years providers and make it near impossible for them to deliver the same high-quality education and safe care to young children. 

“We urge the government to reconsider these proposed ratio changes. It is clear that it will do nothing to reduce costs. Ultimately, children, parents and providers will be the ones who will suffer.

The IFS's report can be read