And the forecast economic downturn might increase pressure on parents and cause them to turn their backs on expensive daycare and childminders, the association fears.
Tricia Pritchard, senior professional officer at Pann, said the Department for Children, Schools and Families' current consultation Childcare Act 2006: Future approaches to fees and subsidies could leave providers facing huge hikes in Ofsted fees. Pann estimates some providers could end up paying almost three times more for registration and annual Ofsted fees by 2010.
"The increases will be substantial and if nurseries have to cut back the only place they can cut back on is staffing - they can't cut back on heating, for example, and insurance," Pritchard said. "A lot of private providers already operate with young staff on the minimum wage and we're campaigning for that to be improved and for training to be improved."
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