The series of reports also highlight providers’ concerns about staff: child ratios being relaxed and, going forward, a ‘limited number’ of qualified and experienced candidates within the sector.
They are however based upon findings from a survey which ran between November and December last year. At total of 1,950 providers took part, made up of group-based providers, school-based providers and childminders.
The Early Years Alliance said the reports, by the National Centre for Social Research and Frontier Economics, showed that there has ‘never been a more difficult time to run, manage or work in an early years setting.’
Key findings from the reports reveal:
- 72 per cent of PVI nurseries and pre-schools have lost staff since the start of the pandemic, with 40 per cent reporting a turnover rate of over 25 per cent.
- 47 per cent of PVI nurseries and pre-schools say the main reasons for staff leaving is for better pay, while 60 per cent say that those leaving are leaving the sector entirely.
- 54 per cent PVI settings and 49 per cent of childminders report that their total costs have ‘notably’ increased since before Covid-19.
- 34 per cent of nurseries and pre-schools have used business contingency reserves to manager their setting finances, while 24 per cent have used savings intended for future improvement. Just under 50 per cent of childminders have had to use their personal savings.
- Just 39 per cent of private providers and 21 per cent of voluntary providers were in financial surplus in 2021. For childminders, this fell to just 19 per cent.
'For years, we have warned the Government that without urgent action, the sector would be left in crisis.'
Neil Leitch, chief executive of the Early Years Alliance, said, ‘As these reports show, there has never been a more difficult time to run, manage or work in an early years setting.
‘A combination of inadequate Government funding, severe staffing challenges and the ongoing impact of the pandemic has created a perfect storm of challenges – one that has left far too many settings on the brink of permanent closure.
‘For years, we have warned the Government that without urgent action, the early years sector would be left in crisis – and now, here we are. And yet, rather than look at what steps it could take to actually support the early years, the Government is wasting time looking at deregulation and ratio relaxation, despite the fact that this will worsen the recruitment and retention crisis, lower quality and make absolutely no difference to costs for parents.’
Purnima Tanuku, chief executive of National Day Nurseries Association (NDNA), commented, ‘This research spells it out in black and white for the Government: the early years sector is struggling financially and with a workforce crisis. Although this has been made worse by the Covid-19 pandemic, we have been sharing the evidence of these challenges for years.
'It is clear from the data the sector faces huge challenges from high staff turnover, vacancies that they cannot fill and working with staff that are less qualified or experienced than they have had before. These are all vital issues that must be addressed before any discussion of changing ratios; otherwise we risk undermining efforts to improve quality and forcing more dedicated practitioners to leave the sector.
'The Government needs to set out a clear strategy for early years to tackle these issues. We also need to see action on ways it can reduce the burden on providers through VAT, business rates and ensuring funding rates truly allow providers to deliver the high quality provision we all want to see for our children.'
The three reports are available here:
