A rise in summer nursery closures could spell “disaster” for children and families this winter, ministers are warned today.
The National Day Nurseries Association said 65% more providers had shut between April and June 2022 – the busiest time of year before four-year-olds leave for school – compared with the same period last year.
Ofsted statistics show a 76 net reduction in the number of nurseries in the summer term, leaving parents scrambling for places.
More than a third of closures were in the 30% most deprived boroughs, with 15% of closures in the 10% most deprived wards, the NDNA said.
This compares to just 8% of closures in the 10% most affluent parts of the country.
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Most parents in England can claim 30 hours a week of free childcare for 3 and 4 year-olds but the sector argues that nurseries are struggling as the scheme is underfunded.
Ofsted figures published in July revealed the number of childcare providers in England fell by 4,000 in the 12 months up to April, the largest decline since 2016.
Nursery chiefs warned that spiralling fuel bills and double-digit inflation could lead to further closures, depriving children of access to vital early years support.
NDNA chief executive Purnima Tanuku said nurseries are “seriously worried about how they will make it through this winter”.
“Most nurseries are small businesses and, similar to the picture in other sectors, these are hugely impacted by rocketing fuel costs, inflation and chronic underfunding,” she said.
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“But nurseries have also had to pay unfair business rates which tax the space they give children to grow, explore and develop.”
She said funding rates per child had fallen by 4% this year as inflation hits double figures, adding: “This is unsustainable and could add up to disaster for children, families and the wider economy.”
Shadow Education Secretary Bridget Phillipson tweeted: “The Tories are choosing to underfund childcare support for families.
“That’s leaving a black hole in providers’ budgets. Forcing thousands to close, and creating chaos for parents. Labour will put families first with affordable available childcare.”
A Government spokesperson 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.
“We know there are challenges facing the sector, which is why we are increasing funding to support employers with their costs, investing millions in better training for staff working with pre-school children and have set out plans to help providers run their businesses more flexibly. This includes plans to support more childminders into the market by reducing upfront costs.”