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The London Assembly Economy Committee has urged the Government to review funding rates for early education entitlements in London, amid concerns about whether the childcare sector can cope with the rise in demand.

The London Assembly Economy Committee has called on the Government to review funding rates for early education entitlements in London, as concerns are raised that the sector will be unable to cope with the increase in demand when free childcare is expanded to children under three.

An investigation by the Committee into early years childcare in London revealed the capital has the highest childcare costs in the country - costing between 25 and 33 per cent more in London than in Great Britain as a whole.

Across two evidence gathering sessions, the Committee heard from organisations including Early Years Alliance, National Day Nurseries Association, Pregnant Then Screwed, Gingerbread, and the Institute for Fiscal Studies.

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