The report, published by the Education Policy Institute (EPI) and National Day Nurseries Association (NDNA), shows that the demand for places in settings such as nurseries and pre-schools has still not returned to pre-pandemic levels.
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This lack of demand continues to cause financial instability for the early years sector, resulting in staff being made redundant, having their pay reduced, or voluntarily leaving settings.
The study warns that if demand for early years places rebounds next year, settings may be unable to find suitable replacements for those staff who have left over the last few months, which could compromise the quality of early years education on offer in the long term.
A survey of settings representing more than 10,000 early years staff across England, Scotland and Wales based in private, voluntary, and independent settings, researchers found that between August and November, six per cent of early years staff were furloughed, while one per cent of staff had been made redundant.
As many as seven per cent of early years staff ended up voluntarily terminating their contracts in the same period, with a quarter (24 per cent) of settings reporting that these employees did not return to their old jobs because they found alternative employment during furlough.
The report also found that almost three-quarters (73 per cent) of early years settings in England, Scotland and Wales such as nurseries and pre-schools, faced closure between August and November.
The most common reasons for closures was insufficient demand for places (72 per cent) and staff members or children self-isolating (26 per cent).
Settings reported that six per cent fewer children are currently attending than in a typical year while in England all settings saw a significant decline in demand for government-funded places. all saw a significant decline in demand: around half of settings reported fewer children taking up these government-funded places.
Joshua Cottell, report author and senior researcher at the Education Policy Institute (EPI) said: “Nurseries, pre-schools and other early years settings are likely to encounter huge challenges to deliver education and care for families after the winter period – if demand for early years provision picks up again next year, many providers could suddenly be facing a staffing shortfall.
“High quality staff are key to supporting children’s early development. It’s crucial that early years providers are given sufficient financial support so that they can give their workforce the job security, pay and training they need. If we fail to support the early years workforce, we risk compromising the quality of education and care for our youngest children.”
Purnima Tanuku, chief executive at the NDNA, added: “This research paints a picture of how difficult this quarter has been for early years settings. With Covid-19 cases high in the community, the majority have faced having to close rooms or whole nurseries due to staff and children self-isolating.
“Nursery businesses need urgent financial support now, in the shape of certainty over January’s funding and emergency support to cover the costs of Covid if they are to be sustainable. Reports recently released by Ofsted demonstrate that the pandemic has had a negative impact on children’s development though reduced attendance at nursery. Children’s development and well-being need to be prioritised so those who educate our youngest children must also be prioritised.”
