Nursery World - Fall in 2009 demand for nursery places matches rise in fees

Demand for nursery places fell by 4 per cent last year, as recession hit and some families opted for informal childcare arrangements, according to Laing & Buisson's latest report on the childcare sector.

Children's Nurseries Market Report 2010 says that while average spending by families on childcare fell, this was offset by a rise in demand for employer-supported childcare through vouchers and workplace nurseries. Nurseries also had a boost from the roll-out of the final phase of the children's centres programme.

During 2009, the total number of nursery places fell by an estimated 8 per cent due to a fall in nursery stock (down 3.6 per cent).

However, the report says that the sector 'probably fared better than many other services and industries' during the recession.

Occupancy is rising again with an average of 82.5 per cent in March 2010, compared with 79.5 per cent last March.

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