
The research “spells out in black and white for the government: the early years sector is struggling financially and with a workforce crisis,” the National Day Nurseries Association (NDNA) said.
Covid-19 has “exacerbated” issues around funding and workforce retention, however, providers have been “facing these challenges for many years”, NDNA chief executive Purnima Tanuku added.
Just 39 per cent of private providers and 21 per cent of voluntary providers were in financial surplus in 2021. For childminders, this fell to just 19 per cent, the reports show.
Meanwhile, 34 per cent of nurseries and pre-schools have used business contingency reserves to manage their finances, while a quarter have used savings intended for future improvement. Almost half of childminders have had to use their personal savings, according to the research.
Register Now to Continue Reading
Thank you for visiting Children & Young People Now and making use of our archive of more than 60,000 expert features, topics hubs, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's Included
-
Free access to 4 subscriber-only articles per month
-
Email newsletter providing advice and guidance across the sector
Already have an account? Sign in here