Credit crunch fear for all childcare

Alexander has spoken out about the knock-on effects that job losses and less income for families could have on early years childcare. "The recession will cause an increase in unemployment, which could in turn lead to a reduced demand for daycare," he said. "The impact of that may mean that day care for some becomes one of those expendable purchases, with people seeking alternatives."

Alexander added that the early years sector is already creaking under the strain of making services sustainable. He said the economic downturn could lead to slow payments of fees and potential family breakdowns due to financial pressure, making it even more complicated for early years providers to chase revenue.

He said that the government's vow to eradicate child poverty by 2020 would be difficult to achieve. "Anything that detracts from parents taking up the free education offer could have a negative impact on children and young people."