Since the government introduced its 30 hours per week funding scheme for 3 and 4 year olds last September, it's saved more than 300,000 working parents an average of £5,000 a year on childcare. But it's come at a huge cost to many childcare providers.
Local authorities receive funding from the government and they pass on a percentage of that to the childcare providers. The rate councils receive and pass on varies across the country.
Suffolk County Council passes on 96% of their funding, which equates to a base rate of £4 per hour per child. The nurseries ITV News Anglia has spoken to in the county say that rate doesn't cover their costs.
Noah's Ark Nursery in Bures on the Essex/Suffolk border almost closed earlier in the year. They've had to increase fees for non funded children and are constantly fundraising to cover the shortfall.
At Melton Day Nursery near Woodbridge, parents who are eligible for 30 hours of free childcare a week, have agreed to pay for extras to help cover the nursery's costs. They pay £12 a day for their child to have qualified teachers and a home-cooked meal.
Nicola says she knows of three settings nearby that have closed in the past year after struggling financially and she believes others will follow if the government doesn't increase the funding.