It depends on the type of setting. For example although mine is a charity it is completly self funded. We charge £2.60 per hour but this is rising to £3.00 in September. The only reason it is sustainable is down to the fact that we have around 50 or 60 children each day.
Clubs that have low numbers have difficulties because of the standards required by Ofsted. For example under 8s must have a 1:8 staff ratio but with a minimum of 2 staff. So if there were only 9 or 10 children they would still have to pay for 2 staff, one of whom would need to be qualified to level 3 and the other at level 2. Once there are 17 children an additional member of staff is required.
They would also have to be CRB checked (free for the first check then payable for any subsequent checks), trained in first aid, child protection, food hygiene, etc, etc all renewed every 3 years.
Then there is equipment, resources, food (£100 p.w. for us), insurance, admin costs, annual Ofsted Registration (£200 for us), phone, rent, etc, etc.
I'd guess if you are paying £8 then your setting is self funded. It might be worth having a chat with the leader to see what the set up is. I'm always amazed by how many parents either think that the Council funds us or don't realise that the school charges us rent.