From Cinderella to the 4th Emergency Service 

By June O’Sullivan CEO of London Early Years Foundation (LEYF) 
Friday, March 20, 2020

Who would have anticipated that a virus we had never heard of could be the last straw to the survival of the early years sector, already weakened by years of under-funding? June O' Sullivan, CEO of nursery group LEYF, on coronavirus challenges

June O'Sullivan: '[Nurseries] need to make some really tough decisions to survive'
June O'Sullivan: '[Nurseries] need to make some really tough decisions to survive'

The crisis, which has been unfolding for the last few weeks, started with us looking at managing cross contamination and has now moved to business survival. 

All the clichés about leading in a crisis are now being tested as we step up and look at what we can do to balance keeping our staff safe with keeping our business going. Most nurseries, whether a social enterprise like LEYF or a private business, survive by having cash to pay the staff and associated costs. No income = no cash and therefore no means of paying our staff. 

We therefore need to make some really tough decisions to survive. Look at these as they may help: 

  • Cut all discretionary spend – everything except what we need to manage a health and safety crisis.  
  • Payments to small business suppliers are slowed for the full 28 days and our regular small providers such as repairs and maintenance are prioritised.  The others we can develop a payment plan so we can pay on our return to normality. 
  • Agency staff is stopped and bank staff reduced to a minimum.  
  • Stop paying business rates – we have a 12-month payment holiday. 
  • Consider not paying pensions and PAYE for the moment 
  • HMRC is offering time to pay for outstanding tax bills on a case by case basis. If you are worried, call the HMRC’s dedicated helpline. 
  • Look at statutory sick pay only as many of you will be able to reclaim it for staff who have to self-isolate. Keep a record. 
  • Employment and Support Allowance will be payable from day one of sickness, rather than day eight. 
  • Remember, the funded children will be funded until the end of the summer term so get the new parents registering ready to start when you reopen. 
  • If you think you will qualify for a business interruption loan, ring your bank now. 
  • Build a cash model so you can see how long you can go with less and less money.  
  • Watch the rules change on Universal Credit where they will lower the threshold for access and stop the taper so more staff will be entitled to this. 
  • Think about hiring your staff to act in a nanny position for the duration so they get paid.  Best to keep them on your contract so they are part of the service. 
  •  Keep everyone calm and well informed. This is a global crisis. 

Now, the Government is suggesting we close unless we can provide a service to keyworkers. We had already been looking at this and linked all our nurseries to hospitals / fire stations and police stations. Now, we need to identify parents who fit the keyworker categories including: 

  • Health and social care 
  • Education and childcare 
  • Key public services 
  • Local and national government 
  • Food and other necessary goods 
  • Public safely and national security 
  • Transport 
  • Utilities, communication and financial services 

Vulnerable children are yet to be defined, but for us at LEYF this will include the disadvantaged two-years-olds, children with an EHCP [Education, Health and Care Plan] and those with an allocated social worker. This will be a challenge as we have lots of these children so we will have to look at ensuring we have sufficient healthy staff to manage this part of the service. 

We will have to get through this. It will be tough but if ever there was a resilient sector, it is the early years. Keep looking at the links to access emerging information but balance this by the overwhelming negative news in the press

Go on Twitter we are still using humour to keep spirits up. @juneosullivan 

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