Privatised nursery faces 'shocking' 24% fee rise

The nursery is set to be taken over by a private owner

Parents have expressed their shock over a proposed 24% hike in nursery fees once a former council-run facility is taken over by a private owner.

Earlier this year, Leeds City Council decided to privatise two of its Little Owls nurseries, located in Harehills and Rothwell, as part of wider cost-saving measures.

Campaign group Save Little Owls Nurseries said increasing fees at the Harehills site from £61 a day to £76 would make access to high quality nurseries "more unaffordable".

New owner, Sunshine Community Nursery Ltd, described the hike as "a necessary step" toward long-term sustainability, but pledged to honour existing parents' current rates for the first four months after the takeover.

Leeds City Council said the provider, which is rated as "outstanding" by Ofsted, would take over on 1 January 2026.

The council said it had demonstrated its ability to provide high-quality childcare and early education in an inclusive environment as well as evidenced a sustainable business model.

However, parents said they were shocked to receive a letter this week, detailing the provider's intention to raise fees from April.

Iain Dalton said the increase had come as a shock to parents

Iain Dalton, a spokesperson for the Save Little Owls Nurseries campaign, said: "This is something we said all along would happen if nurseries were privatised, that the new private owners would want to make a profit, they'd look at either reducing hours or increasing fees.

"This part of Leeds particularly is quite a deprived area, people are on low incomes and that's a lot of money for people to have to find at a time when everything else is going up as well."

A spokesperson for Sunshine Community Nursery Ltd said the majority of families would benefit from funded childcare entitlements and the government's tax-free childcare scheme which subsidises 20% of fees.

They said: "We understand that changes in nursery fees can be concerning for families, and we want to reassure parents that our priority is always to provide safe, high-quality, and nurturing childcare.

"We remain committed to working closely with families to ensure they feel supported, and our goal remains to provide children with the very best start in life while securing the nursery's future for years to come."

Extensive review

Mr Dalton said he was still hoping the council would reconsider its position and stop the transfer of management.

Twelve sites had been considered for alternative management, following the closure of three settings last year, as part of plans to tackle overspending.

The council said the transfer in management of the Rothwell and Harehills sites would save £124,000 in 2025/26, and almost £500,000 the following year.

"While we appreciate the impact of any fee increase on families, following the transfer of management from Leeds City Council the responsibility for this now lies with the new provider," a council spokesperson said.

"The decision to seek alternative providers followed an extensive review of our Little Owls nurseries, which was undertaken to address the service's significant ongoing financial deficit, while ensuring sufficient early years places across the city."

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