TWO nurseries in Beaconsfield have pulled out of the Government's free childcare place scheme - leaving parents to pay full costs or look for new places.

From September, Hiawatha Montessori School and Oakwood Nursery will no longer offer free places – saying the enforced expansion of the scheme would leave their business unworkable.

They had hoped the new coalition Government would scrap plans to increase the number of free hours provided from 12.5 to 15 hours a week, but the policy has remained.

Nurseries in Bucks would be paid £4-an-hour by the county council under the scheme, but Sarah Kettlewell, the owner of Hiawatha Montessori - based at Beaconsfield SYCOB - said this is not enough to cover her costs.

She said: “This is much against what we set out to do, but I just can't afford it. I've had to tell all our parents and there will be consequences for some of them.

She believes other nurseries in the town may have to follow suit, creating a shortage of free places.

She has told parents she will “give it a go” at charging £5.75 an hour adding: “I'm fortunate to own another business so I will try to break even.”

Nurseries in Buckinghamshire have long struggled with high overheads and staff costs compared to other areas of the country, so it has become common for parents to be charged a 'top-up fee' to cover costs, Mrs Kettlewell said.

This system has worked reasonably well, she said, but from September a statutory code of practice will stop nurseries charging extra.

Audrey Morris, the owner of Oakwood Nursery on Wattleton Road, said: “We would go under if we didn't withdraw from the scheme. We just couldn't operate under those restrictions.

“We were managing quite well and everyone was happy with paying a small fee.

“For most of the country these increased hours would be reasonable, but in the South East the staff salaries and building costs are far higher.

“If the Government want free quality nursery provision why don't they provide it themselves? Rather than come to the private sector and expect them to supply it.”

Meanwhile, Mandy Mckenzie, the leader at Holtspur Pre-School, said: “We are a non-profit nursery, so will struggle on with the free places and just cover our overheads.

“No one is sure what the knock on effects of this will be – we might get large numbers wanting a place here in September.”

The South Bucks Nursery Forum has been campaigning against the changes and its spokesman Tom Hackwood, who owns Stepping Stones in Amersham, said 13 nurseries in South Buckinghamshire, including his own, had withdrawn from the free places scheme.