Staff told investigation is underway to find out what happened at York College. The nursery will remain shut while agencies investigate death of Lydia.
A letter was sent out to all parents advising them about alternative childcare options.
There are questions about computer use at City of York Council after it was revealed council staff and councillors in the city spend thousands of hours logged on at work to the social networking site Facebook. The authority says staff and members used Facebook for more than 15,700 hours last year.
One councillor claims that equates to the hours worked by eight full-time staff in a year. But the council says staff are allowed to use computers for personal use during their own time, and sites such as Facebook are "legitimate business tools" for some departments.