Childcare providers across Britain are raising prices, and cutting staff and opening hours to cope with funding pressures, new survey data suggests.
The charity Coram Family and Childcare questioned all local authorities about the costs and provision of childcare.
Three quarters of councils that replied said many providers were charging more than last year and were finding it "very difficult" to recruit staff.
The government says it is trying to cut costs and bureaucracy for providers.
Ministers are under pressure from opposition parties and a number of Conservative MPs to prioritise reform of the childcare system.
Jo Callaghan runs a small chain of nurseries in Essex. She says she had to increase her fees by 10% this year, and had also cut back on the number of subsidised childcare places she offers.