A new report by isos Partnership, commissioned by the Local Government Association (LGA), finds:
- 88 per cent of councils are concerned that nursery closures in 2023 will be ‘significant’ and ‘undermine sufficiency’.
- Fewer than half (48 per cent) of councils are ‘fully confident’ of having sufficient childcare provision for children aged two under the current entitlements.
- 40 per cent of councils saw a ‘spike’ in nurseries closing in 2022, compared to the year before. Insufficient income to meet rising costs and workforce-related issues were among the main reasons behind some of the closures.
The findings are based on a survey of local authority early years teams back in January, which received 98 responses, representing 65 per cent of upper-tier local authorities and county councils. The report also draws on analysis of Ofsted data.
Sector organisations warn of failure of expanded 30 hours
The National Day Nurseries Association (NDNA), said the ‘stark report’ was ‘another clear warning to Government that its policy risks failure without interventions to support the sector’, while the Early Years Alliance argued that the ‘only way expansion [of the scheme] won’t result in complete disaster is if the Government effectively engages with the sector and ensures funding is adequate.’ It said that in its current form, the scheme will only lead to further closures.
The Chancellor announced in March that every child from nine months in an eligible working family would be entitled to 30 hours of ‘free’ childcare by September 2025.
Under the expansion, the proportion of places delivered through Government-funded entitlements is expected to go up to around 80 per cent – from just under 50 per cent now.
With councils responsible for directing the ‘majority of childcare spending’, the LGA says their role will become even more critical in managing the market.
It wants councils to have ‘stronger powers’ for commissioning provision centrally to ensure that the right provision is available in the right places, including the ability to withhold funding where a provider wants to open in an area where there is already plenty of provision.
Challenges faced by settings
The report, ‘Nursery Closures: Research on the nature, impact and drivers of nursery closures in England’, also highlights the cost pressures nursery owners and managers are facing and how the recruitment crisis, which is especially impacting disadvantaged communities, is preventing settings from being able to run at full capacity.
It finds that some nurseries have been forced to shut rooms or close temporarily for days or weeks. Some have had to limit places for children with more complex needs.
The LGA is now calling on the Government to ‘go further and faster’ on addressing the ‘urgent’ workforce challenges within the early years sector.
It acknowledges that the Government announcement on a consultation around workforce is positive, but there needs to be a ‘wholesale review’ of the recruitment and retention challenges.
'It is vital the Government’s planned recruitment drive tackles staffing shortages'.
Councillor Louise Gittins, chair of the LGA’s Children and Young People Board, said, ‘Nurseries and childcare providers are already under massive pressure, grappling with severe financial and workforce challenges, which has seen staff numbers depleted and an acceleration in places closing.
‘Alongside the improved funding rates, it is vital the Government’s planned recruitment drive tackles the staffing shortages and provides an opportunity for staff to progress and thrive in a fulfilling career.
‘Councils will also need to be given the right levers to manage local childcare markets, given the significant rise in Government-funded places local areas will see.’
- Read Jodie Reed, director of isos Partnership's opinion piece here
