Nursery sector strain in Walthamstow
6 Sept 2025

The government’s expanded free childcare scheme is creating pressure on nurseries across the country, and Walthamstow is no exception. Wood Street Nursery, a long-standing independent provider, has reported significant challenges balancing government funding with the true costs of care. Although families can now access up to 30 hours a week of free childcare from nine months until school age, the funding rate—about £4.70 per child per hour—falls short of covering staffing, premises, and overheads.
The gap between funding and real costs is forcing many nurseries to make difficult choices. Staff wages, which must rise to keep pace with London’s cost of living, account for the largest share of expenditure. Shortages of qualified staff exacerbate the problem, with nurseries competing for a limited pool of trained workers. Meanwhile, utility bills and rents for childcare settings continue to increase, leaving little room for investment in facilities or expansion. As a result, waiting lists have become common in Walthamstow, and parents often face disappointment when trying to secure a place.
To cope, some nurseries are introducing additional charges for “consumables” such as meals, nappies, and educational trips. While legal, this practice raises concerns about affordability, as what is billed as ‘free childcare’ often comes with extra costs. Parents, particularly those on modest incomes, are feeling the strain. For many families in Walthamstow, securing a nursery place has become as challenging as paying for one.
— Tasha Mensah, Community Correspondent
Source: https://www.thetimes.co.uk/article/inside-a-nursery-as-new-free-childcare-scheme-bites-gdr7fj96k

Tasha Mensah
Contributor