Coram Family and Childcare’s 22nd annual Childcare Survey, published today (9 March), finds that only half of local areas have reported sufficient childcare for children under two, a decrease of 7 per cent on 2022.
A breakdown by region reveals sufficiency of places is most problematic in outer London where just 28 per cent of local authorities report having enough childcare for those under the age of two and no problem in the North East where 100 per cent of local authorities said they have enough places.
In total, less than half (48 per cent) of local authorities reported enough childcare for parents working full-time, a drop of 11 per cent on last year’s figures.
Fewer than one in five local authorities reported sufficient childcare for children with disabilities.
It comes as campaign group Pregnant Then Screwed will be delivering a letter, signed by over 50,000 parents, to the Prime Minister Rishi Sunak, and Chancellor Jeremy Hunt today to urge them to invest in early years education in the Spring budget.
The survey also found that childcare providers have reduced the number of funded places they provide. In England, there has been a 6 per cent drop in the proportion of areas that have enough 15-hour free entitlement places for three and four-year-olds. Coram Family and Childcare raised concern that the drop in places will mean a widening of the attainment gap between disadvantaged children and their peers.
Childcare costs
According to the research, a part-time nursery place (25 hours a week) for a child under two now costs an average of £148.63 per week, an annual increase of 5.6 per cent.
The average price for a part-time place with a childminder for a child under two is £125.91 a week.
However, there remains ‘significant’ differences in the cost of childcare across England. The average weekly cost of a part-time place for a child under two is 54 per cent higher in inner London at £199.01, than in Yorkshire and Humberside at £129.32.
The average price of a full-time place (50 hours a week) for the same age child in nursery is £285.31 across Great Britain, and £247.19 per week at a childminders, it finds.
Childcare costs over a decade
Pressures on providers
Local authorities responding to the survey said that the recruitment and retention of staff, cost of staff, cost of energy, the funding rate and the cost of food were ‘key factors’ decreasing sustainability of childcare providers in their area.
A total of 19 per cent of local authorities that provided data said that a quarter or more childminders in their area are at risk of leaving the profession, while 18 per cent said that a quarter of private providers are at ‘financial risk’.
‘Create a simpler and more effective childcare system’.
Ahead of the Budget next week, Coram Family and Childcare is calling on the Government to reform the childcare system to create a simpler and more efficient system that prioritises quality, guarantees a childcare place for every child, values the workforce and makes sure that parents only pay what they can afford. While this reform takes place, they also call on the Government to take the following ‘urgent steps’:
- Review the funding rate for early education entitlements.
- Reform universal credit so it does not lock parents out of work.
- Re-allocate underspend from Tax-Free Childcare to other parts of the childcare system and realign Government funding towards low-income families.
- Extend 30 hours funded early education to parents in training or education.
- Improve support for children with SEND through introducing responsive funding to improve staff skills and make more childcare places accessible.
- Double the Early Years Pupil Premium (EYPP).
Megan Jarvie, head of Coram Family and Childcare, said, ‘The need for reform of the childcare system is urgent. As well as eye watering bills, parents are facing widening gaps in availability of the childcare they need. As the Chancellor decides his budget, we urge him to recognise the value of investing in childcare – it is a wise investment, enabling parents to work and boosting the outcomes of young children.’
Neil Leitch, chief executive of the Early Years Alliance, said, ‘How many more families will be priced out of the early years system before the Government admits there is a problem? How many more providers will be forced to permanently close for ministers to accept that the only way to improve the affordability and availability of early education and care is to fund the sector properly?
‘The situation facing families and providers is nothing short of a disaster. It is absolutely vital, therefore, that the Government commits to fully-funding the early years in the upcoming budget – anything less it risks the complete collapse of the sector.’
National Day Nurseries Association's (NDNA) chief executive Purnima Tanuku commented, ‘Rising fees for parents are now making early education and care out of reach of many parents.
‘Nurseries have a stark choice: reduce their offering to parents, increase their fees to cover their shortfall or close their doors for good.
‘The Government must now listen to the overwhelming evidence from the sector, local authorities and families themselves and invest sufficiently in our youngest children where the money makes the most difference to their outcomes.’
A Government spokesperson said, 'The number of childcare places available to families in England has remained broadly stable since 2015 and standards remain high, with 96 per cent of providers rated good or outstanding.
'We recognise that families and early years providers across the country are facing financial pressures, which is why we have spent more than £20 billion over the past five years to support families with the cost of childcare.
'This Government has also doubled the entitlement for working parents of 3 and 4 year olds to 30 hours and introduced 15 free hours a week for disadvantaged two-year-olds.'
