From September onwards, full-time working parents with 3 or 4-year-olds can get extra nursery time for free. However, the additional money the government is spending on these nurseries is by far not enough. Nursery time therefore increases from 15 hours per week to 30 hours. Nevertheless, the nurseries only get 40p more per hour which can never cover the additional costs. Up to now, government had also paid 40p per hour for the 15 hours a week, but nurseries found a work-around by charging parents for extra time. Now, with free 30 hours per week, this stream of income will end.
Source: http://www.bbc.com/news/education-40443170