City of London Corporation members are set to vote on June 30 on whether to maintain a £60,000 annual subsidy for affordable childcare at The Aldgate School, the only state primary in the Square Mile, following sustained pressure from parents and campaigners.
Background to the funding crisis
The Aldgate School, rated 'Outstanding' by Ofsted, provides affordable childcare for children aged three months to three years. In March 2024, Corporation members agreed to end the subsidy, with changes due from September 2025. After pushback, funding was extended twice, most recently until August 2027. A petition organized by parents urged the Corporation to commit to ongoing support ahead of the June 30 Community and Children's Services Committee meeting.
Wayne Daly, a parent involved with the petition, said the funding has enabled parents to return to work. He stated: "The facility in Aldgate is school-based, and the only early years setting in the City with its own contained, outdoor playground. Early years children benefit from the extensive school infrastructure and institutional organisation, and it encourages social mobility for children."
Officers' report outlines two options
The officers' report presents two options: continue the £60,000 annual financial support, or stick to the planned August 2027 cut-off. In February 2025, the school's Governing Body informed the Corporation that without future funding, the 0-2 childcare service would end. Costings shared in April indicated a £60,000 annual shortfall to retain the provision.
Officers wrote: "The Head Teacher and Co-Chairs of the Governing Body have indicated a willingness to continue delivery if the shortfall in funding is met by the City Corporation. This would facilitate continued delivery of locally valued and affordable childcare offering preferential fees for City residents." The school is in Portsoken ward, which has the highest proportion of low-income households in the City.
Funding is also needed to cover three years' pay protection for four childcare staff, moving them from Corporation pay scales to National Joint Council levels. An outstanding matter regarding a lease with The Portal Trust, the school site owner, has been resolved, with an agreement reached for continued use beyond September 2027.
Community and political support
Common Councillor Jason Pritchard, representing Portsoken, called the potential extension "extremely encouraging" and "a significant step in the right direction." He said: "Whilst there is still an important decision for members to take on June 30, I warmly welcome the fact that they are now being asked to consider an option that would provide ongoing financial support for affordable childcare provision at The Aldgate School."
He added: "One of the most important aspects of this campaign has been highlighting the link between affordable childcare and social mobility. Accessible and affordable childcare is not simply about supporting children - it enables parents to work, helps reduce inequalities and gives children the strongest possible start in life."
Jiya Dave, a parent with a child at the school, expressed shock that the £60,000 subsidy is being debated, calling it "the price of a single City salary" while the Corporation spends millions on projects like the Barbican Centre refurbishment. She said: "We chose The Aldgate School deliberately. It is exactly the model the Government is actively investing in; school-based, outdoor space, a natural pathway from baby room to primary school."
Rachel Blake, Labour MP for Cities of London and Westminster, said she has been contacted by concerned parents and staff. She stated: "For many local families, this isn't just a childcare service, it's an important part of the school community and a vital source of support. With the ongoing pressures many families are facing, access to affordable, high-quality childcare is more important than ever."
Union and Corporation response
Anna Lee, GMB Regional Officer, said: "The City of London Corporation have been hoping that the outcry on this issue would just go away over time, but they have not been able to provide any feasible alternatives which would provide affordable childcare for working parents. The City needs to confirm the £60,000 funding required to keep the service going. This is peanuts to one of the wealthiest local authorities in the country, but means everything to the staff, parents, and children who are part of this wonderful service."
A City of London Corporation spokesperson said: "In June last year, elected members agreed a time limited package of support for 0–2 childcare at The Aldgate School, running until the end of August 2027. That timetable remains unchanged. This support was put in place to provide stability for families while the City Corporation and the school work together to explore financially viable options for the future. We are continuing to work collaboratively with school to examine costs and potential future models, and will keep families informed as this work progresses."
The spokesperson added that there is "sufficient, high quality, accessible childcare for all our families across the Square Mile" and that the Corporation supports eligible families through Government entitlements and its Childcare Accessibility Scheme, as well as the Best Start in Life scheme.
