Labour backs campaign to reverse childcare furlough decision
Derren Hayes
Tuesday, April 21, 2020
Labour’s shadow childcare minister has warned the government’s decision to withdraw furlough funding for early years providers will “cripple” nurseries and force many to shut.
The warning from Labour’s Tulip Siddiq MP comes as an online petition calling on the government to reverse its decision to exclude early years providers from claiming 80 per cent of a furloughed employees’ wages has received more than 100,000 signatories.
The Department for Education issued fresh guidance detailing which childcare employees would be eligible for the Coronavirus Job Retention Scheme (CJRS) on Friday (17 April), less than 72-hours before claims applications for the scheme opened yesterday.
Coronavirus (Covid-19): financial support for education, early years and children’s social care says providers may only access CJRS funds “to cover up to the proportion of its paybill which could be considered to have been paid from that provider’s private income”. This means employers will be unable to claim for the percentage of income covered by government-funded “free” childcare places.
However, many nurseries have already furloughed members of staff and have closed after previous government guidance stated settings were eligible to apply for the furlough scheme.
Siddiq, MP for Hampstead and Kilburn, said the late change to the furlough arrangements has left the childcare sector “panicking”.
-
Early years sector 'in jeopardy' after government U-turn on furlough funding
-
Latest Coronavirus news
“Early years providers were struggling before coronavirus, and many now face an existential threat from the loss of parents’ fees in this crisis,” she said.
“I understand that ministers want to ensure businesses can’t profit from emergency support, but the funding that providers were led to believe they could access was a lifeline.
“The decision to restrict this funding nearly a month after it was promised in full will cripple nurseries, many of which have already been forced to close. I fear the result will be many valued childcare workers losing their jobs and more providers being forced to shut completely, and perhaps permanently.”
Early years organisations met the DfE on Monday to raise their concerns and a petition created by campaigners on Change.org has already attracted 105,000 signatures. Siddiq has added her voice to those calling for a rethink by the government.
“Childcare is the fourth emergency service in this crisis, and I know that the government does not want the early years sector which provides it to collapse,” she added.
“So I am urging ministers to rethink this decision and come forward with a proper funding plan to ensure that childcare providers can stay open and survive this crisis.”
The Pre-school Learning Alliance, which was involved in the DfE meeting, said the eleventh-hour changes to the arrangements for early years providers could have a hugely damaging impact on the long-term sustainability of the sector.
Alliance chief executive Neil Leitch said: “Thousands of providers have now written to their local MP on this issue through the Alliance's email campaign. We urge the government to rethink this decision and ensure that the sector gets the support that it needs to get through this crisis, and beyond."
Leonor Stjepic, chief executive of the Montessori Group, also called for the government to clarify the meaning of the latest guidance, and warned that excluding early years providers from being able to claim the full amount under the CJRS would hinder the country's recovery from the Covid-19 crisis.
“Quality childcare for workers will be an essential linchpin of economic recovery once the storm has subsided,” she said. “Forcing nurseries into closure, which is a very real risk, will make it impossible for many parents to return to work. We urge the government to deal with this immediately in order to support the future of early years, and our economy.”
