Nursery World - Nurseries and childminders that rely on parent fees risk closure after lockdown

Childcare providers that rely on parents’ fees, rather than free entitlement funding, are particularly vulnerable to closure, which could lead to a childcare shortage, the Institute for Fiscal Studies warns in new research.

Lockdown has put a quarter of private nurseries at risk of significant deficit, says the research

A report from the IFS highlights the extent of the financial crisis facing the childcare sector as a result of the coronavirus pandemic and warns that families could face a shortage of places.

It points out that many providers were already facing a difficult time financially before the crisis, but that the loss of fees from parents since March, when lockdown started, means that many providers are facing a difficult time staying open.

A total loss of income from parent fees would have put a quarter of private nurseries at risk of running a 'significant deficit' during lockdown. This compares to 11 per cent of providers pre-crisis.

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