Five workers will lose their jobs the week before Christmas and parents of 18 toddlers will be forced to find alternative childcare after a nursery’s funding was slashed.

New Birth Day Nursery in East Ham had their funding for two-year-olds cut after Ofsted downgraded their rating from “good” to “requires improvement”.

The nursery, which has been open a year, stands to lose 18 two-year-olds who receive free childcare provided by the council.

It employs one worker for every four children so will subsequently lose five members of staff.

Sarnjit Samchi, 27, has worked at the nursery since it opened and will lose her job on December 19.

She said: “I’ve built up a strong relationship with the kids and it hurts I won’t get to see them anymore.

“I don’t think it’s fair on the parents either because they’ve got to start over again and find a new nursery to settle their children into. I’m scared it will be difficult for me to get a new job too.”

Michaela Howard, 29, manager of the nursery, added: “It’s going to affect us loads, it’s such a shame.

“We’ve got strong attachments to both the children and the staff we’re going to lose.

“It takes a lot for parents to get your trust, especially as their kids are so little. Some of them are still getting used to us after three months and now they have to move.”

Parents entitled to 15 hours of free childcare will need to find another provider in the borough that has a “good” or “outstanding” rating.

A council spokesman said Department of Education (DFE) guidance states places for two-year-old children should only be funded with providers rated “requires improvement” if there is insufficient “good” or “outstanding” provision.

He added: “Their funding has been withdrawn in line with DFE guidance and the early years agreement they signed with the council.”

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