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Childcare funding crisis puts quarter of settings at risk, Labour analysis shows

2 mins read Early Years
Up to a quarter of childcare settings could be forced to close over the next year without extra support from the government, latest analysis suggests.
Labour's shadow education secretary Kate Green said the childcare sector was facing a 'perfect storm' of rising costs and falling income
Labour's shadow education secretary Kate Green said the childcare sector was facing a 'perfect storm' of rising costs and falling income

Analysis of Early Years Alliance data by the Labour Party found that 19,000 of the 75,000 childcare providers in England felt it was “somewhat” or “very” unlikely that they would be open in 12 months’ time.

The party said this is the result of rising costs and insufficient financial support from the government to mitigate the impact of the the Covid-19 pandemic.

Labour has previously warned that the childcare funding crisis could hamper the economic recovery from the pandemic.

Kate Green MP, shadow education secretary, said the government had created a “perfect storm” with the crisis “locking children out of early education and making it impossible for many parents to return to work”.

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