- Out-of-school providers on external sites are facing huge rent increases, putting their future at risk
- One before- and after-school provider was faced with a £56,000 rent increase
- A DfE report recently highlighted severe safeguarding risks within out-of-school provision due to not all clubs needing to register with Ofsted or make themselves known to their local authority
Out-of-school providers operating on school sites are increasingly being pushed out as schools hike up rents or bring provision in-house.
The Out-of-School Alliance (OOSA) told Nursery World it was becoming more common for schools, particularly those that are part of academies, to increase the amount of rent they charge to external providers to run breakfast and/or after-school and holiday clubs, effectively forcing them out of business.
Nursery Worldspoke to two experienced out-of-school providers who were operating from school sites and were forced out after their rent was increased.
One provider in Redditch, Worcestershire had to relocate her club after the school increased the rent from £12,000 to £68,000 per annum, last year. Another provider in Essex closed her out-of-school club, which had been operating below capacity since the pandemic, when the school continued to put up the rent.
OOSA director Rebekah Jackson Reece said that with the cost-of-living crisis, rising energy bills and tight budgets, schools are looking at ways to boost their income. But in many cases providers are working to tight margins, and don't want to pass on the increased cost to parents.
She said, ‘In no other industry would businesses be expected to operate on such risky terms; very short notice periods to vacate, constant changing terms, prospect of huge rent hikes, pervading threat that the landlord will serve notice and set up in their place. Yet, day after day, out-of-school providers rise to this challenge. Our members are under enormous pressures. Not only are they faced with the constant worry about losing their venue or being priced out by schools or community venues increasing rent, but also rising costs of delivering their service. If their costs increase, they have no financial resilience so have to raise prices, which could make them unaffordable. It's an almost impossible situation for many, leading to setting closures, high stress levels and burnout among those involved.’
According to figures from Coram Family and Childcare, some families are now spending more on after-school clubs than their weekly shop. Its 2022 Childcare Survey found that the average weekly price for families using an after-school club for five days per week in Great Britain is £66.52 – an increase from £62.12 in 2021.
In 2021/22, OOSA, lost almost 700 of its breakfast, after-school and holiday club members. While Jackson Reece said there was a ‘level of churn’ every year and there are many reasons for that, it was a higher number than normal.
However, she admitted that it is impossible to know how many private providers have been forced out of school premises as not all clubs are registered with Ofsted – an issue that was highlighted in a recent report by the Department for Education (DfE) which identified multiple serious safeguarding risks.
Unlike schools and childcare settings, the out-of-school sector is unregulated under education and childcare law. Providers have no legal obligation to register and no requirement to engage with the local authority in any way. They do not have to be affiliated with any umbrella organisation or to have any skills, qualifications or training in order to operate.
Safeguarding concerns in out-of-school sector
At a time when there is concern around the survival of school-based clubs, the DfE has published findings from an 18-month pilot study in 16 council areas, which it commissioned to look into safeguarding risks in the out-of-school sector and the powers local authorities have to deal with them.
The DfE defines an out-of-school setting as ‘an institution which provides tuition, training, instruction, or activities to children in England without their parents’ or carers’ supervision, that is not a: school; college; 16-19 academy; provider caring for children under 8 years old, which is registered with Ofsted or a childminder agency’. This covers uniformed organisations, sports and leisure clubs, tuition centres and supplementary schools, faith-based organisations and arts.
The report highlights safeguarding risks including sex offenders working in settings, child grooming, corporal punishment being used, sexually explicit and extremist material being shared with children, unsafe buildings and environments, and inadequate safeguarding checks, including on staff and volunteer adults.
It states, ‘Many families send their children to OOSS [out-of-school settings], and it is assumed that most are run correctly, safely and with children's best interests at heart. However, this currently remains unchecked.’
The report also highlights how none of the local authorities in the pilot had a ‘full list’ of the out-of-school settings in their area. It states, ‘OOSS have no obligation to notify anyone of their existence, there is no formal register, nor is there a centrally held database.
‘Unlike other educational settings and childcare services, the OOSS sector is unregulated under education and childcare law.’
Action required
To ensure the out-of-school sector's ongoing viability and make sure it is no longer the ‘hidden sector within childcare’, OOSA is calling for a number of actions, including standards of safe practice; and a mandated requirement that all out-of-school settings notify an authority they are working with other people's children. They would need to say who is in charge of the setting and who it is open to.
Jackson Reece said, ‘We want a level playing field, where all types of providers of out-of-school provision, including schools, are required to register and work to the same appropriate standards of quality provision so there is parity in terms of operational costs and expectations.
‘We recognise the extreme financial pressures schools and community venues are facing and we urge decision-makers to engage openly and transparently with out-of-school service providers about how they can work together to best serve the children and families in their communities.’
Clubs exempt from Ofsted registration
- Those that provide tutoring or coaching in either one or two of the following activities to children aged three and over – school study support or homework support, sports, performing arts, arts and crafts, religious, cultural or language studies.
- Clubs providing a specific activity such as football or dance for children over the age of eight as these are not officially counted as childcare.
- Holiday clubs that operate for 14 days or fewer in a calendar year.
- Those that look after each child for under two hours a day – even if the setting is open for longer than two hours.
CASE STUDIES
Amanda Lawler, director, Funzone
Faced with a rent increase of £56,000, Lawler was forced to find alternative premises for her before-, after-school and holiday club in Walkwood C of E Middle School in Redditch after October half-term. She had operated the club from the school premises for more than 20 years.
Lawler moved her club to the local community centre, five minutes’ drive away, which meant she had to purchase a minibus to collect children from the school. As a result of relocating, Lawler has lost children she used to provide care for and has had to put up her fees.
She said, ‘From February, my fees will go up by 20 per cent. The increase is partly due to having to pay more to use the community centre (however, it is still cheaper than being on the school site with the change in rent) and to cover the rise in the national minimum wage.’
Lawler, who also runs out-of-school clubs from three other schools, as well as holiday provision, charges around £6.50 for a morning session and £12 for an afternoon session, both of which include a snack for the children.
Despite being very flexible with her provision – parents can book ad hoc sessions – the numbers of children she cares for has fallen since she had to move from Walkwood school, from 50 to around 20 in the morning, and from 70 to around 40 in the afternoons.
She told Nursery World, ‘I worry about the future of out-of-school clubs, especially those operating within financially driven schools. Before- and after-school provision should be about giving children the chance to play and be with their friends, but I worry that if schools take over the provision, some may not provide this opportunity.’
A spokesperson for the school said, ‘Our school has been complying with the information given by the Education & Skills Funding Agency, and the out-of-hours provider declined to meet the cost to us to provide the facilities to them. Our school has not charged parents for the extra-curricular clubs that we put on and has no intention of doing so. This no-cost provision for our pupils of Year 5 to Year 8 has increased in its offer this year.’
Tracey Watkins, Essex out-of-school provider
Watkins was left with no choice in December but to close her out-of-school club, which was operating below capacity, after the school she had been at for 16 years increased the rent.
She told Nursery World that following the Covid pandemic, the school where she operated from started putting up the rent. Within a year, the school, which is part of an academy group, had increased the rent on three separate occasions. At the same time, the number of children using the club had dramatically fallen compared to pre-Covid attendance levels. Both factors ultimately led to the closure of the club as Watkins refused to make parents pay more in fees.
She said, ‘Being part of a school environment since 2007, we’ve had our ups and downs like any childcare facility, but it's all about the money now. I’ve had to take out loans and borrow money from friends to keep my business running. Covid hit us hard! Before the pandemic, 30-40 children attended the club, five days a week. When schools reopened after lockdown, we started with one child and built up six to eight children, four days a week. On a Friday, our quietest day, just five children were attending.
‘Trying to build up the numbers of children attending the club after the pandemic was hard. Lots of parents continued to work from home or could call on grandparents to help with childcare – something that has impacted all childcare settings.’
The school has since started running its own breakfast club, while another provider is now delivering after-school care at an increased cost to parents.
Watkins continued, ‘I was heartbroken that I had to close my club at the school. All the children were devastated by the news. I feel like there is no loyalty any more as it is all about the money. Childcare facilities and staff are not recognised as professionals and there needs to be more help in place.’
