The owner of a South Derbyshire nursery has reassured his staff that their wages will not be cut to cater for the government's new free childcare scheme.
Graham Blunt, of Swingboat Nurseries which owns Woodville Day Nursery, has responded to claims that nursery workers salaries will be cut to make way for a new 30 hour free childcare scheme, which was introduced earlier this month.
The New Economics Foundation think tank found nurseries would have to pay staff £7.33 an hour - below the minimum wage - to break even without passing on costs for the plan, which would mean a pay cut for 62 per cent of the least qualified staff, and one of 85 per cent for those with at least A-level qualifications.
However Mr Blunt said there will be no reductions to his employees wages "under any circumstances."
Mr Blunt said: "In Derbyshire the government are paying £4 per hour, which makes it very difficult for us to remain sustainable while providing the outstanding level of care our parents expect. It does not actually cover our costs and to enable our setting to remain viable we are having to charge parents for meals, resources, extra hours and administration, we would not be able to offer these places without doing this.
"In my opinion it will be very difficult to maintain quality childcare in the longer term based on the government’s current level of funding, and many nurseries have decided not to offer the 30 hours and we have had to limit the number of free places we can provide.
"Going forward unless the government increase the funding for this initiative they are in danger of destabilising the nursery sector that in many cases is already struggling to stay viable.
"In my opinion the government are just trying to provide this scheme on the cheap by putting the burden on childcare providers."
Under the Government's plans, all three and four-year-olds in England will be entitled to 30 free hours of childcare a week from this month, up from 15 hours.
The think tank said nurseries would look at making savings elsewhere, by cutting services or charging more for other extras such as foods, nappies and activities - leaving parents to fill the funding gap.
Lucie Stephens, of the New Economics Foundation, said: "It is right that the Government is looking at ways to deal with the crippling cost of childcare for parents. But they have to put their money where their mouth is.
"This research shows that the whole system for funding childcare in this country doesn't really work. Nurseries will either pass on the extra cost to parents, cut services or squeeze their workers' wages. None of that is good news.
"We need to support new and better ways of doing childcare. When parents have real control over the design and delivery of the care their children receive, it becomes more affordable and more suitable for their needs.
"At the New Economics Foundation we are working with parents to develop new models of childcare, which combine decent pay and conditions for staff with real control and affordability for parents."
