Both the Early Years Alliance and the National Day Nurseries Association have written to the Chancellor to say that they feel their concerns over their ability to continue to operate in the current crisis are being ignored.
Yesterday the Chancellor Rishi Sunak set out plans to extend more funding to businesses through Government-backed and guaranteed loans ‘for any business that needs access to cash’, which he said would be up and running by the start of next week.
He also announced a business rates holiday for all retail, hospitality and leisure businesses, but nurseries are not included in this exemption, despite ongoing calls from the sector to include them.
In a letter to Mr Sunak, Neil Leitch, chief executive of the Alliance, said that omitting the childcare sector from business rates relief given to other industries was ‘inexplicable’, and called on ‘the Treasury to act now to prevent a full-blown crisis in the childcare sector’.
‘In yesterday's press conference, you announced a range of substantial measures to help ensure businesses can weather the current storm and mitigate, as far as possible, the detrimental impact of the virus,’ he wrote.
‘It was of immense concern, therefore, that there was zero mention of the childcare sector. I know that businesses in the retail, hospitality and leisure industries will have warmly welcomed your announcement on business rates relief, but for childcare providers, their omission from this measure was inexplicable.
‘Much has been made of the value of the schools in supporting parents, particularly those working in key frontline services, to continue to work during this outbreak - but if early years providers are no longer able to operate because of a lack of financial support from Government, the impact on working families, and the wider economy, will be just as devastating.'
While the Department for Education has confirmed that nurseries will continue to receive funding for two-, three- and four-year-old entitlement places, whether or not they have to close, 'many providers rely on parent fees as a vital source of revenue, this alone is not enough to safeguard the sector,' he said.
‘It seems that our vital sector has been all but forgotten in Treasury discussions on protecting businesses from the impact of coronavirus, and those working in nurseries, pre-schools and as childminders across the country feel frightened, angry and abandoned during their time of need.’
The NDNA has also written to the Chancellor.
Purnima Tanuku, chief executive of NDNA, said, ‘While the loans will offer a safety net, the last thing stretched early years providers want to do is get into any further debt, so this will be a last resort for them. We have been in regular contact with Treasury officials and putting pressure to include nurseries in the business rate relief.
‘Nurseries must have reassurance they can continue to remain sustainable even if parents are withdrawing their children or the nursery is no longer able to deliver childcare due to the outbreak. How can they manage if the parent income begins to dwindle?
‘I have written to the Chancellor to ask for further financial support for these crucial businesses which are supporting frontline workers such as NHS and transport employees to continue to work. We are pressing for financial backstops regarding business insurance to ensure nurseries can stay open and for financial support to nurseries who may lose parental income.
‘Nurseries are working round the clock to keep settings open and safe for children. If they are forced to close this will make it more difficult for parents to work and put more demands on informal childcare like grandparents.’
