National Day Nurseries Association (NDNA) has been tracking nursery closures since the 30 hours of funded childcare was introduced in 2017 through member data and publicly available reports, checked against Ofsted’s register.
It found between April and July, 33 nurseries closed, which it says is a 65 per cent increase on the number that closed the same time last year.
Of these, more than a third were in the 30 per cent most deprived boroughs, with 15 per cent of closures in the 10 per cent most deprived wards. This compares to just 8 per cent of closures in the 10 per cent most affluent parts of the country.
According to Ofsted statistics, which include data on nurseries opening and closing, there was a 76 net reduction in the number of nurseries this summer term – compared to a net gain for the same period in 2021.
The NDNA said the figures ‘raise alarm bells’ for winter months when more nurseries tend to close. It says the summer term is normally the busiest time of the year for settings before four-year-olds leave to start school.
With fuel bills soaring and inflation predicted to hit 18 per cent next year, NDNA is warning the Government, the new Prime Minister and new ministers at the Department for Education that this academic year could see a record-breaking numbers of closures leading to a ‘catastrophic’ reduction in childcare places.
To ‘stop the tide of closures sweeping the country’ the NDNA puts forward a number of recommendations to Government, they include:
- ‘Urgently’ increasing funding rates to at least keep pace with inflation and minimum wage rises due to be announced in autumn for April 2023.
- Supporting nurseries with recruitment and retention issues – allowing childcare practitioners to be included on the shortage occupation list and supporting bridging qualifications to allow more people to enter the workforce.
- Removing business rates and VAT for childcare businesses in line with schools and academies to support providers.
'Nurseries are seriously worried about how they will make it through this winter.'
Purnima Tanuku, chief executive of NDNA, said, ‘As we enter the new school year, our nurseries across the country are seriously worried about how they will make it through this winter.
‘All nurseries’ challenges can be sourced back to Government policy.
‘Funding rates per child increased by less than 4 per cent this year and yet inflation is running at more than 10 per cent already. Every child in early years learns about quantity, number and understands “less’ and ‘more”. Ministers need to learn this lesson and recognise that inflation is currently more than double their last funding rate increase. This is unsustainable and could add up to disaster for children, families and the wider economy.’
She went on to say that they are ‘particularly concerned’ about more nursery closures in areas of deprivation.
A Government spokesman said, ‘We have spent more than £4 billion in each of the past five years to support families with the cost of childcare.
‘The number of childcare places available remains stable, as it has since 2015, and thousands of parents are benefitting from this support.’
