Call for recession fund to shield childcare places

By Ross Watson Thursday, 25 June 2009

The government should create a contingency fund for local authorities to protect childcare places in the face of large-scale redundancies, according to a report by charity the Daycare Trust.

Children being read to. Credit: Arlen Connelly

The report, Childcare and the Recession, states that redundancies caused by the closure of a large local employer could create instability in settings as parents take their children out of childcare.

Emma Knights, joint chief executive of the Daycare Trust, said: "We're looking for a contingency fund that authorities could draw money from if a large organisation closes or there are large-scale redundancies."

The report says the childcare market is currently holding up. But it says: "If the recession deepens, causing rises in unemployment, then childcare occupancy rates will fall and more settings will close, threatening the government's ability to deliver universal childcare entitlement to parents."

The report also recommends that the poorest parents should be able to claim up to 100 per cent of their childcare costs through tax credits.

Junior children's minister Delyth Morgan said: "So far, the downturn has not had a major impact on the number of childcare places available, but we know that there may be variations at local level. We are monitoring the situation closely."