Liverpool City Council has decided to sell the child care businesses that run from Garston, Tuebrook, Wavertree and Knotty Ash Children’s Centres as going concerns.
In addition, the city council will no longer provide a subsidy to the child care business run from Everton Children’s Centre.
The hope is that children and staff will simply transfer to the new owners so there is minimal disruption.
The decision does not affect any other Children’s Centres services or Everton’s nursery school.
The five child care businesses are costing the city council a total of £791,000 per year in subsidy, which is not sustainable given the financial challenges facing the city.
Around £148 million of savings to be found over the next four years on top of the £141 million made over the last two years.
Councillor Jane Corbett, Cabinet member for Education and Children’s Services, said: “We could have simply opted to close the child care businesses but we are mindful that this would cause a huge amount of disruption and distress for parents, carers, children and staff.
“By selling them we will be able to make sure the provision stays open and that we are making the best of a very difficult financial situation caused by unfair Government cuts.”
The city council will now gauge interest in finding organisations that are interested in taking over the council’s child care businesses with the aim of transferring the businesses in the autumn of 2013.
Consultation will also start with staff and trade unions, and the city council will be writing to parents and carers.