Daily fees at council-run Little Owls nurseries in Leeds are set to increase by 7% as the local authority looks to tackle a budget deficit.
Rates are set to increase to £58.10 – an increase of £3.80 per day.
The move comes as Leeds City Council looks to save £900,000 this financial year as council chiefs look to balance the authority’s books.
To meet the savings target three nurseries will be closed – Chapel Allerton, Kentmere in Seacroft and Gipton North. A review of another 12 centres will be carried out, which could see them merged or taken over by alternative providers. These include centres at Bramley, Burley Park and Hawksworth Wood in West Leeds.
A council report authorising the price increase said: “The Little Owls consultation has generated significant public interest and questions from parents and carers of children attending the settings. One of the questions that has been raised is whether alternative measures are being considered, such as increasing childcare fees, to improve the financial position of the service.”
The report added: “To reflect the higher rates of inflation in recent years and address the unsustainable budget deficit of the Little Owls daycare provision, there is now a need to increase fees by a higher per cent rate than previously.
“This increase will aim to close the gap between actual costs incurred and potential income. This would reduce the overall deficit and improve the financial sustainability of the Little Owls provision.”
The report says many families will be eligible for some element of funded or discounted provision and concludes: “It is felt that the proposed 7% increase balances the need to generate additional income whilst still supporting the social value of the Little Owls provision and ensuring families in more disadvantaged areas of the city have access to high quality early learning and childcare opportunities.”
A Little Owls Nursery is also based at Armley Moor.
Price increases will come in from September 2024. The Little Owls budget was overspent by £1.9m in 2022/23 and by £840,000 the following year, according to council reports.
WLD has been chronicling cuts in Leeds since 2020 in its Cutswatch series.