Early years sector hit by 'devastating' impact of Covid-19 crisis, Sutton Trust warns

A coronavirus impact report, published by social mobility charity the Sutton Trust, says early years providers in deprived areas are more unsure of their future than those in more affluent ones.

The trust’s latest analysis of a poll by the Early Years Alliance of 6,300 early years providers, highlights the “devastating” effect of the pandemic with many settings facing permanent closure and, in turn, a long-lasting impact on children’s development.

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In response to its findings, the trust is calling for the government to introduce an £88m rescue package to help alleviate crippling financial pressures on early years settings affected by the coronavirus crisis.

Its research shows at the height of the pandemic in April, two-thirds of early years providers were closed to all children, including 79 per cent of pre-schools, 59 per cent of nurseries and 41 per cent of childminders.

Of those that were closed, two-thirds expected to be open again by June, with 20 per cent expecting to still be shut and 15 per cent uncertain about whether they would be able to reopen at all, the report states.

However, it says many providers, particularly those in disadvantaged areas, have relied on government support to stay afloat through initiatives such as the furlough scheme and business rates holidays.

The investigation found 35 per cent of nurseries and pre-schools in the most deprived areas were more than twice as likely to have needed a business rate holiday compared to those in the least deprived areas (16 per cent).

They were also twice as likely (18 per cent) to have made use of small business grant funding than settings in more affluent areas (10 per cent).

As such, the analysis concludes many early years providers could be forced to close permanently with those in disadvantaged areas more unsure of their future (34 per cent) compared to those in less deprived areas (24 per cent).

Nearly 69 per cent of providers in deprived areas are expected to operate at a loss over the next six months with 42 per cent anticipating having to make redundancies.

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By contrast, 29 per cent of providers in the most affluent areas were expected to have to cut back on staff.

The trust said a support package was urgently needed not only to bring providers back from the brink of closure but to address inequalities caused as a result of the pandemic.

“The impact of the crisis has not been equal, with the most vulnerable and disadvantaged children and families suffering the most, with a prospect of long-term damage to their already restricted social mobility and life chances,” the report states.

The £88m package would be used to deliver transition funding to protect early years providers in the coming months while they faced the cost of being fully open, but unlikely to reach full capacity, the trust said.

It would also provide a one-off boost to early years pupil premium funding for next year, to support nurseries and pre-schools, particularly those in deprived areas, to offer more direct support for parents to promote home learning environments and healthy child development, it added.

The report draws on a separate YouGov poll of more than 600 parents in Britain with children aged two to four which found 45 per cent of parents felt their child’s social and emotional development and wellbeing had been negatively impacted by the lockdown.

Those whose children were unable to attend nursery or pre-school were most likely to report this as an impact of the restrictions.

Sir Peter Lampl, founder and chairman of the trust, said access to high quality early years education was a crucial factor in a child’s development, both in terms of attainment and their social and emotional wellbeing.

“The coronavirus crisis is having a devastating impact on the early years sector, with many nurseries and pre-schools facing closure.

“This will inevitably have a long-lasting impact on children’s early development. Parents will struggle to find a place for their child. This will affect their ability to go to work,” he said.

The National Day Nurseries Association (NDNA) said the trust’s report echoed its own research which reveals that 71 per cent of nurseries faced running at a loss for the coming months.

The association said the levels of impact on nurseries in areas of deprivation were “deeply concerning”.

“The Department for Education’s own statistics show that the majority of providers were struggling even before coronavirus hit,” said Purnima Tanuku, NDNA’s chief executive.

“Research shows that children in disadvantaged areas benefit the most from high quality early years education.

“Providers need to be sustainable so this is available to children in these areas,” she added.

The Professional Association for Childcare and Early Years (PACEY) said the report “shines a light” on the thousands of livelihoods under threat in the early years sector.

Liz Bayram, PACEY’s chief executive, said: “No working parent can be without childcare; no child should be without the quality early education that childminders, pre-schools and nurseries provide but Covid-19 is threatening to take this all away.”

Bayram said some of the association’s members had already closed their early years setting with many worried about their prospects for the future.

“The fact the report highlights that almost 70 per cent of providers expect to have to operate at a loss for the next six months is a wake-up call for this government,” she said.