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By Shannon Hawthorne

 

The government has announced the early years , revealing that most local authorities will not receive any additional funding next year.

 

The new figures also reveal that 14% of local authorities will actually see a reduction in the level of funding.

 

The government has also released an updated version of its for providers, confirming that local authorities must increase the amount of funding they pass on to providers from 93% to 95% in 2018/19.

 

The guidance also reiterates that local authorities should not distinguish between the first and second 15 hours of childcare entitlement.

 

Neil Leitch, chief executive of the Alliance, said that the new funding rates demonstrated why so many providers are worried about their long-term sustainability.

 

Neil said: 鈥淒espite the fact that we are seeing staff wages, rents and mortgages, insurance costs and business rates all increase, the vast majority of local authorities in England won鈥檛 receive a penny more in government funding for the so-called free entitlement next year. Worse still, 14% of councils will actually see a fall in funding.鈥�

 

鈥淲e have long warned that if funding rates don鈥檛 increase in line with rising early years delivery costs, more and more nurseries, pre-schools and childminders are going to be forced out of business. The vast majority of childcare providers in this country support the idea of free childcare in theory, but they cannot be expected to deliver it if they are suffering a real-term loss in funding year after year,鈥� Neil added.

 

Earlier this year, a conducted by the Alliance revealved that 49% of childcare providers were worried that they could close as a result of the funding.

 

The Alliance is calling for providers and parents to join its , which asks the Department for Education to review the current funding rates.

 

More than 5,000 people have joined the campaign already 鈥� add your voice .