Nursery World - Market View: A tough year

Arun Kanwar, managing partner at Cairneagle, on a challenging 2023 for the early years market

Arun Kanwar

As we reach the end of 2023, it’s worth reflecting on the year that has gone.

In the 15 years that I have been in the nursery market, this year has certainly been one of the most challenging I’ve seen for UK nursery operators, with a double-whammy of occupancy problems – due to a combination of staffing constraints and some muted parental demand in the wake of price increases, changing working habits and economic uncertainty – and cost pressures from inflation and agency usage.

That said, the March Budget announcement to extend 30 hours to under-threes holds promise if supported properly, although the outcome of the recent staffing consultation will likely only loosen the recruitment and retention challenges by a little (and the level 3 apprenticeship hasn’t dropped the maths requirement yet).

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