Hampshire nursery calls for funding rates to be looked at as they've faced a "massive impact"
A Hampshire nursery is saying they're having to "balance the books"
Last updated 17th Oct 2025
A Hampshire nursery is calling for funding rates to be looked at as they face "massive impacts" following financial changes.
Expansion grants were initially hoped to help nurseries cover the higher costs of delivering the government’s new childcare offer for children aged nine months and over from September.
But with monetary changes based off of the Spring headcount as opposed to Summer, it's meant less funding for the Cuddles and Care Day Nursery.
Jayne Sergeant runs Cuddles and Care Day Nursery and said: "From all of us that do this job, it's not just a job role, it's an absolute passion.
"You live it 24/7 and to know that you're doing all of that but you're still trying to balance the books at the end of the day, it becomes really, really difficult.
"It means you're spending extra time trying to find alternatives or trying to find a way just to make everything balance out, without feeling that you're actually jeopardising the service that you want to offer.
"Obviously that's the last thing we'd ever want to do in this job role that we do."
Ms Sergeant told us what they're finding difficult.
"Nurseries, preschools and child minders have all found ourselves in the same boat at the moment.
"I absolutely strongly appreciate that parents and families get the bonus with 30 hours funding.
"I know that means a lot to families, certainly all the ones we've spoken to.
"It's not easy to try and work and find childcare, and get something that works for you as a family.
"It's a fantastic system and there's lots of help and support out there, but right from the top, from the government; it doesn't feel that everyone providing that service has got a fair share of taking on that responsibility.
"Right from the advertising, 30 hours free childcare, and as we know, that's only a term-time only setting, which is 38 weeks.
"It doesn't cover those children who attend all year round, because then it drops down to 22 hours a week.
"It's not free.
"It is funded with the expense we have to incur to make those provisions available, our costs, our outgoings, the funding rate, we know everyone's proven it doesn't match what it costs to deliver the service."
The government say they're going to be increasing funding to nine billion pounds from next year.
We've reached out to Hampshire County Council and the government for a reply.