Parents in London are struggling to pay childcare fees, a survey by the Daycare Trust has found.
Half (51 per cent) of the 400 nurseries, pre-schools, childminders and out-of-school clubs that took part said that parents not being able to afford fees was a key issue, followed by local authority cuts (41 per cent).
While most providers blamed the recession for parents struggling with childcare costs, ten per cent blamed cuts to tax credits.
The survey also reveals the extent to which providers have been hit by local authority cuts. Sixty-eight per cent had experienced funding cuts, 65 per cent reduced training, and 45 per cent fewer services offered by children’s centres.
Providers were also questioned about taking part in the free entitlement for disadvantaged two-year-olds and overwhelmingly cited increased funding as a key reason that would make them most likely to offer the places.
More than 26,000 places for two-year-olds are needed to meet the September 2013 rollout.
The charity is calling on London’s re-elected Mayor Boris Johnson to tackle the crisis by lobbying for a reversal of cuts to tax credits and promoting family-friendly practices and childcare vouchers, among other policy recommendations.
Providers also backed a proposal for the Government to adjust the level of free entitlement funding local authorities receive in line with the costs of local provision.
Anand Shukla, chief executive of Daycare Trust said, ‘Our research shows that potentially tens of thousands of childcare places in London are at risk, as sustainability is threatened because parents simply cannot afford their fees. This is not a surprise – parents in London pay higher fees than anywhere else in the country, and are being hit hardest by the cuts to childcare tax credits.
‘As the Mayor begins his new term of office and sets out plans for the forthcoming four years, childcare providers across the capital are urging him to make childcare a key part of his agenda.
‘There is much the Mayor can do to tackle London’s growing childcare crisis – from standing up to central Government against cuts, to working with businesses to promote family-friendly practice. Too many parents in London do not access the childcare support they are entitled to. We are urging the Mayor to work with providers, local authorities, London Councils and the third sector to change this.
‘The roll out of free childcare places to two year olds is one of the biggest anti-poverty initiatives in years. It has the potential to benefit tens of thousands of families across London but in order to really do so the Mayor must act to tackle London’s childcare crisis.’
The National Day Nurseries Association said the report highlighted the need for more funding to cover the costs of the free entitlement.
Chief executive Purnima Tanuku said, ‘A majority of our members have reported that funding for three-and four-year-old places does not cover delivery costs.
'This means childcare providers are forced to operate at a loss or have to increase fees for paid for places, hitting the pockets of parents. When free nursery places are extended to 20% of two year olds in 2013 26,000 additional funded places will required in London alone, so it is vital that this funding issue is resolved sooner rather than later.
'NDNA would recommend ringfencing of the free nursery education funding to make sure the cost of funded places is covered. NDNA would also advocate reducing or exempting private and voluntary nurseries from business rates and VAT to reduce costs to help make them become more sustainable.’
While most providers blamed the recession for parents struggling with childcare costs, ten per cent blamed cuts to tax credits.
The survey also reveals the extent to which providers have been hit by local authority cuts. Sixty-eight per cent had experienced funding cuts, 65 per cent reduced training, and 45 per cent fewer services offered by children’s centres.
Providers were also questioned about taking part in the free entitlement for disadvantaged two-year-olds and overwhelmingly cited increased funding as a key reason that would make them most likely to offer the places.
More than 26,000 places for two-year-olds are needed to meet the September 2013 rollout.
The charity is calling on London’s re-elected Mayor Boris Johnson to tackle the crisis by lobbying for a reversal of cuts to tax credits and promoting family-friendly practices and childcare vouchers, among other policy recommendations.
Providers also backed a proposal for the Government to adjust the level of free entitlement funding local authorities receive in line with the costs of local provision.
Anand Shukla, chief executive of Daycare Trust said, ‘Our research shows that potentially tens of thousands of childcare places in London are at risk, as sustainability is threatened because parents simply cannot afford their fees. This is not a surprise – parents in London pay higher fees than anywhere else in the country, and are being hit hardest by the cuts to childcare tax credits.‘As the Mayor begins his new term of office and sets out plans for the forthcoming four years, childcare providers across the capital are urging him to make childcare a key part of his agenda.
‘There is much the Mayor can do to tackle London’s growing childcare crisis – from standing up to central Government against cuts, to working with businesses to promote family-friendly practice. Too many parents in London do not access the childcare support they are entitled to. We are urging the Mayor to work with providers, local authorities, London Councils and the third sector to change this.
‘The roll out of free childcare places to two year olds is one of the biggest anti-poverty initiatives in years. It has the potential to benefit tens of thousands of families across London but in order to really do so the Mayor must act to tackle London’s childcare crisis.’
The National Day Nurseries Association said the report highlighted the need for more funding to cover the costs of the free entitlement.
Chief executive Purnima Tanuku said, ‘A majority of our members have reported that funding for three-and four-year-old places does not cover delivery costs.
'This means childcare providers are forced to operate at a loss or have to increase fees for paid for places, hitting the pockets of parents. When free nursery places are extended to 20% of two year olds in 2013 26,000 additional funded places will required in London alone, so it is vital that this funding issue is resolved sooner rather than later.
'NDNA would recommend ringfencing of the free nursery education funding to make sure the cost of funded places is covered. NDNA would also advocate reducing or exempting private and voluntary nurseries from business rates and VAT to reduce costs to help make them become more sustainable.’
