One in 10 childcare providers in England likely to close, official report finds

‘Funding is spread too thinly to enable the step change in quality that is needed,’ a separate report says. Photograph: Gary Hider/Alamy

One in 10 childcare providers in England is facing closure and more than half are struggling to cover their costs, according to the government’s research into the impact of the cost of living crisis on the sector.

The findings will fuel concerns about the capacity of the sector to grow to meet the government’s £4bn expansion to its free childcare offer, which was outlined in the budget this year.