Nursery closure fears for 8,000 children as running costs and fuel bills rocket
- National Day Nurseries Association fear 8,000 children could lose out this year
- Nursery closures are up by 65 per cent between April and July compared to 2021
- Funding has increased by 3.8 per cent this year but inflation is at 10.1 per cent
- Nurseries have long argued that government funding does not cover their costs
As many as 8,000 children face losing their nurseries this year as rocketing fuel bills and running costs force childcare providers to raise fees or close their doors.
Nursery closures are up by 65 per cent between April and July compared with last summer, according to the National Day Nurseries Association (NDNA).
The number of childcare providers in England plummeted by 4,000 in the 12 months up to April – the largest decline since 2016, according to figures from regulator Ofsted.
Most children aged between three and four are entitled to 30 hours a week of free care but nurseries have long argued that government funding does not cover their costs.
The NDNA has now estimated that – without further financial help – up to 8,000 children could lose their nurseries this financial year if the trend continues.
Sums can vary between local authorities but the average grant for an hour is around £5.15 – roughly 95p less than what nurseries say they need.
As many as 8,000 children face losing their nurseries this year as rocketing fuel bills and running costs force childcare providers to raise fees or close their doors. (File image)
Laura Dabbs said she was ‘absolutely devastated’ when she received an email to say her three-year-old daughter Lola’s nursery was closing last month.
Uxbridge Early Years Centre in west London is one of three nurseries being shut by Hillingdon Council.
The three – which also include Nestles Avenue Early Years Centre and South Ruislip Early Years Centre – were said to be operating at a collective loss of £532,000.
The 39-year-old said: ‘I was absolutely devastated. The nursery and its staff were like a second family to us. ‘People do not realise what a lifeline a good and affordable nursery is.
Mother Laura Dabbs was ‘absolutely devastated’ when she found out her daughter Lola’s nursery was closing
Some parents will be forced between paying as much as double what they are paying now or compromising on the quality.’
The customer service manager, who wanted to send her three-month-old son Austin to the same nursery, is one of 1,350 to have signed a petition calling for the closures to be halted.
A council spokesman said financial pressures had forced them to make ‘efficiencies’.
Although funding increased by 3.8 per cent this year, that still trails behind inflation which currently stands at 10.1 per cent.
Cash-strapped families have already seen hikes in childcare fees. Sending a child under two to nursery for 25 hours each week now stands at £7,212 on average – up from £7,160 last year, according to children’s charity Coram.
However, the NDNA found nurseries in the poorest parts of the country were struggling the most – with a third of the 33 closures it recorded this summer in the most deprived boroughs.
Chief executive Purnima Tanuku 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.
‘Ministers need to 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.’
The NDNA is calling for ministers to axe business rates and VAT to help support nurseries through the winter.
Many are also struggling to recruit and retain staff due to an exodus in the sector following the pandemic. Philip Ford, managing director of Hopscotch Children’s Nurseries, has lost around a fifth of his staff in the last year.
The six nurseries, which are based in Sussex, cater to around 700 children in total.
Mr Ford, 37, said: ‘We are already having to turn families away because we need to keep a minimum staff-to-child ratio to keep the children safe.
‘On top of that we are dealing with horrendous utility bill spikes – our gas bills have gone up by 250 per cent alone.’
Caroline El-Semman, co-founder of the Little Jungle nursery in south-east London, said she has lost a quarter of her staff in the past year.
More than 100 children attend the 11-year-old nursery in Peckham. However it is now set to hike fees for the third time in less than 18 months.
Miss El-Semman, 48, said it costs around £7.60 to provide an hour’s care for each child. However she only receives £5.96 from the council – nearly 25 per cent less than required.
She added: ‘We have made all the cuts we can and it is now all about ensuring we remain viable. As an industry I just feel we are completely undervalued.’
Labour’s education spokesman Bridget Phillipson said: ‘Thousands of providers are going to the wall as the Conservatives are choosing to underfund their childcare offer for families.
‘Providers are being left with a black hole in their budgets.’
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.’
Source: Read Full Article
