A new report by the Institute of Fiscal Studies (IFS) highlights that while many providers were facing financial difficulties before the pandemic, a total loss of income from parent fees since settings were forced to close in March has put as many as a quarter of private-sector nurseries at risk of running a significant deficit during lockdown.
The IFS states: “That’s more than double the number which were running a significant deficit prior to the pandemic and is despite government support through continued public funding and the substantial furlough and self-employment schemes.”
Despite childcare providers being allowed to reopen in early June, by the start of the summer holidays demand for childcare places remained 70 per cent below pre-crisis levels, the Challenges for the childcare market: the implications of Covid-19 for childcare providers in England, report states.
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