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.
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.
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