A national Government programme to give free education to more two-year-olds could lead to a shortfall of more than 2,500 spaces at nurseries and childminders across Bradford, it has emerged.

The change, which is being rolled out from September, could be hampered locally by a major shortfall in places for eligible two-year-olds, a Bradford Council report has warned.

Currently, some disadvantaged two-year-olds can get 10 to 15 hours of free education, along with the 15 hours of free lessons offered to all children aged three and four. The education, funded by the local authority, can be provided at state-run or private nurseries, childminders or daycare.

From September, this offer will be extended to all two-year-olds in care or those from families eligible for free school meals. And in September 2014, it is likely to be extended again to take in two-year-olds with special educational needs or disabilities, as well as those from low-income working families.

But this will leave Bradford with England’s fifth-highest level of eligible children, according to a report by Bradford Council’s Children’s Services.

It estimates that from September 2014, about 59 per cent of two-year-olds in Bradford – 5,200 children – will be eligible for the free lessons. And there aren’t enough places at nurseries, pre-schools and childminders to go round.

According to the report, by George McQueen, Assistant Director of Access and Inclusion, if all eligible parents took up the offer of free education, it would create a shortfall of around 2,620 places. The report, to the Children’s Services Overview and Scrutiny Committee, said the areas with the biggest shortfall were likely to be Bradford East and Bradford West, as they would have the most children entitled to the new early years education.

It said: “The Department for Education is working on the assumption that around 80 per cent of eligible children will access their entitlement. This represents a very challenging target.” The report said to tackle the shortfall, start-up funding was being offered to childcare providers interested in setting up new businesses.

If the 30 schemes come to fruition, they will provide more than 1,000 new places for two-year-olds by 2014.

Committee chairman Councillor Malcolm Sykes (Con, Thornton and Allerton) said the potential shortfall needed addressing. He said: “This report is being brought to us simply to address these issues. It’s not a crisis yet but we need to understand what this is going to mean.”

Councillor Sinead Engel (Lab, Clayton and Fairweather Green) said the committee had raised concerns about the potential shortfall before. But she said not all families would take up the free places, and in particular children in Asian families tended to be looked after at home until they reached school age.

Councillor Geoff Reid (Lib Dem, Eccleshill) raised concerns about how the free places would be publicised in deprived areas. He said: “The need is there, but the capacity is not necessarily there, so it’s a bit of a juggling act.”