Shepherds Lane: Plans revealed to increase fees at Little Owls Nursery after Leeds Council transfer
Parents and carers have criticised a proposed increase in fees at a Little Owls Nursery in Leeds following a takeover by private owners.
Shepherd’s Lane Little Owls Nursery in Harehills was formally transferred to Sunshine Community Nursery Ltd from Leeds City Council in July 2025.
Now parents have expressed their shock after they received a letter detailing a planned fee increase of a reported 24 per cent, going from £61 a day currently to almost £76 a day from April 2026.
It estimated that the transfer of power, alongside the transfer of Little Owls Rothwell to Sweet Peas Day Care, will earn Leeds City Council in-year savings of approximately £124,000 in 25/26 and a full-year saving of approximately £497,000 in 2026-27 onwards.
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Iain Dalton, a spokesperson of the Save Little Owls Nurseries campaign, said “Throughout our campaigning over the last year and a half, Save Little Owls Nurseries campaigners have warned that any attempts to privatise nurseries would likely lead to detrimental changes for parents and carers as the new private owners sought to protect and increase their profits.
“This is why it has been so vital that our campaign has existed to organise the opposition of parents, carers and trade unionists against these proposals, meaning that at least ¾ of nurseries the council had suggested could be privatised remain in council hands without theses fee hikes.
“Leeds City Council has always had an alternative to closing and privatising nurseries with a detrimental effect on parents, carers and their children. At every stage we have asked for them to work with us and the trade unions representing nursery workers to campaign to demand the funds necessary from central government to ensure high quality, affordable nursery provision remains in Leeds.”
Last June, council leaders confirmed the closure of Little Owls sites at Seacroft, Chapel Allerton and Gipton, while 12 more were placed under review as part of a major Leeds City Council cost-cutting drive to tackle a projected £273 million budget black hole over five years.
Earlier this year, it was confirmed that after failing to find “satisfactory alternative providers,” the council would retain responsibility for six remaining sites at Bramley, Meanwood, Burley Park, City and Holbeck, Hunslet Rylestone and Osmondthorpe.
This is in addition to the nine sites the council committed to retaining at the outset - Chapeltown, New Bewerley, Little London, Harehills, Swarfcliffe, Seacroft, Middleton Laurel Bank, Two Willows and Armley Moor.
A Leeds City Council spokesperson said: “Sunshine Community Nursery Ltd was approved to take over the management of Shepherds Lane Little Owls following a robust evaluation process, having demonstrated its ability to provide high-quality childcare and early education in an inclusive environment.
“As part of the process, all potential alternative providers had to evidence they could operate a sustainable business model, to ensure longevity of the service within the local community for future years. While we appreciate the impact of any fee increase on families, following the transfer of management from Leeds City Council the responsibility for this now lies with the new provider.
“The decision to seek alternative providers followed an extensive review of our Little Owls nurseries, which was undertaken to address the service’s significant ongoing financial deficit, while ensuring sufficient early years places across the city.”
Discussions are continuing with St Mary’s CE Primary School regarding its interest in Hunslet St Mary’s Little Owls.
Sunshine Community Nursery Ltd have been approached for comment.