�㽶��Ƶapp

By Shannon Pite

One in 10 early years providers say it’s ‘likely’ they will need to close over the next six months, a new survey from the Department for Education (DfE) has found.

The Pulse survey of childcare and early years providers also found that 47% of settings (58% of group settings vs 39% of childminders) reported that their income was not sufficient to cover their costs, under from 35% in winter 2021.

It also found that 45% of childminders had be forced to use their personal savings to manage their finances, while 37% of group settings had used their business contingency reserves.

The survey also highlighted the challenges over recruitment and retention, with 49% of group providers reported having one or more vacancies, and 68% reported experiencing staffing issues in the last year. If those settings who had had staff leave, 65% said that “better pay” was a reason.

Commenting, Neil Leitch, CEO of the Early Years Alliance, said: 

“This report shows just how risky the government plans to expand the so-called ‘free childcare’ offers are. 

“When nearly half of providers say their income is not covering costs, one in ten say imminent closure is likely and the vast majority are reporting staffing challenges, then it’s clear that the existing system simply isn’t working. 

“Worse still, as the report highlights, despite providers’ very best efforts, continued cost pressures and an urgent need to reduce costs are now starting to impact the quality of education and care they are able to offer.  

“While it’s true that providers have been hit hard by the cost-of-living crisis, there’s no doubt that it is the years of government inaction that have created the current catastrophic situation.  

“As such, rather than piling even more pressure on the sector through ever-bigger promises of ‘free childcare’, the government needs to focus on fixing the problems that it itself has created through years of underfunding and neglect.”