Cheryl Hadland, Managing Director and CEO of Tops Day Nurseries has raised concerns over under-funding of the Early Years sector again this week following a report shared by the IFS and Nuffield Health.
A number of childcare providers across the country are worried they may have to close their doors for good after a study conducted by the IFS shows that more than double the amount of nurseries are running at a significant loss now compared to before lockdown.
While childcare settings were allowed to open to all children from the start of June, by the start of summer holidays demand for childcare places remained 70% below pre-crisis levels. There is a risk that some childcare providers will close, creating a shortage of places once demand returns to ‘normal’ levels.
Even by mid-July, after lockdown ended, childcare use was only around 30% of its pre-crisis level. Over the coming year, the key question will be how much – and how quickly – demand for childcare recovers. Assuming no further government support, it’s estimate that for every 5% drop in fee income from pre-crisis levels, an additional 3-4% of settings risk tipping into significant deficit.
Cheryl, who oversees Tops Day Nurseries in Newport, is calling for supporting early years education providers give all children a fighting chance to develop well, even if they have had a tough start, by funding staff properly to be trained, and paid enough to be able to stay in the sector.
Cheryl Hadland says:
“Tops Day Nurseries have remained open throughout the pandemic at our hospital based nurseries. Although all 30 day nurseries have now re-opened.
“We have survived the pandemic so far thanks to furlough, no business rates, cutting all our costs to the bone, and receiving local authority funding for children not in attendance, but we still made a loss in August. Rates paid by the government/local authorities for funded hours are at least 20% under the cost to provide these, so the fundamentals of the sector is currently not sustainable, significantly limiting our ability to pay staff anything like what their responsibilities, skills and qualifications should be rewarded with.
Article continues below this advertisement “It is time that the vital education and care provided by early years professionals is rewarded fairly.
Cheryl adds:
“There is a misconception that the ‘Free childcare’ advertised by the government and councils for many years is actually free. It is not free, it is subsidised by low paid staff and struggling employers. Of the funding provided by the Government, Local Authorities provide nurseries with around £4 per hour per funded child, but it costs at least £5-£6 per hour to provide childcare and education, and more in high property value areas”.
How about this for a novel idea. PARENTS use some of the £20 per week per child, child allowance, OR, some of the £100 per week tax credits to pay towards the cost of ‘entertaining’ their own child, using this charity payment?
It is NOT for a new phone, larger TV, or new car repayments, or hols. It is for YOUR child. Cake and eat it too springs to mind.
Fully agree with Zak. How about all child benefits/allowances/ credits paid as vouchers only redeemable through legitimate outlets concerned with the welfare of the child involved.