Out of school clubs 'on brink of collapse'

Research by the Out of School Alliance finds that 82 per cent of clubs providing care to children in the form of breakfast clubs, after school clubs and holiday clubs had closed when Covid-19 lockdown measures were introduced in March.

A further 13 per cent said they had managed to keep their club open but two per cent had closed permanently, the survey finds.

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The 359 clubs which took part in the survey provide 41,000 childcare places, the organisation said.

Of the clubs that had closed 56 per cent said it would not have been financially viable to stay open with a number of children attending, a report published by the Out of School Alliance shows.

Clare Freeman and Catherine Wrench, directors of the Out of School said: “As out of school clubs receive no government support at all, unlike nurseries or childminders, they are entirely reliant on fees from parents in order to remain open. They cannot afford to run at a loss.”

Some 51 per cent of clubs said they had closed because schools had taken over childcare and 20 per cent of respondents said they were forced to shut at the request of their landlord - in many cases this was a school, the report states.

Almost a quarter (23 per cent) of respondents said they had closed over concerns for the safety or staff and children but just six per cent said closure was due to a shortage of staff.

When asked about financial support offered to clubs, 82 per cent said they had used the government’s coronavirus job retention scheme (CJRS).

However, later today (May 29) Chancellor Rishi Sunak is due to announce measures to taper the scheme which could see companies asked to pay 20 per cent of workers’ wages and cover the cost of national insurance and pension contributions for furloughed staff from August.

The report states: “Like all small employers, providers are generally very grateful for this support but are very worried about how they will manage when the government’s contribution to furlough pay will be reduced, until the start of September when (hopefully) clubs will be able to re-open.”

Many respondents criticised a lack of support offered to out of school clubs, the report shows.

Just 20 per cent of clubs had used the Self-Employment Income Support Scheme, the Coronavirus Business Interruption Loan Scheme was used by just 2 per cent of clubs while 12 per cent used a government bounce back loan. which probably reflects the wider problems with accessing the scheme. 

Only 8 per cent of respondents benefitted from small business rates relief, the alliance said.

The report states: “Significantly, 10 per cent of respondents reported that they had not made use of any of the financial support schemes included in our question. Whether this is because they are not eligible for any support, or for other reasons, is unclear. 

“However, several respondents did report that they weren’t eligible for any support with one respondent saying that they had ‘not received a single penny of support from the government during the crisis’, another that their ‘business doesn’t appear to fit any of these criteria, which is a real concern’, another that ‘due to being a charity [we are] struggling to get anything off anyone’.”

As a result of the pandemic, less than half (47 per cent) of clubs said they were likely to reopen in September.

A further 10 per cent said they “definitely or probably” would not reopen while 44 per cent said they were unsure.

Freeman and Wrench said: “This sector has been continually ignored by the Department for Education in terms of guidance on what it is expected or permitted to do during the school shutdown, and now during the planned gradual re-opening of schools from 1 June. 

“Unlike other forms of childcare it has received no targeted support from the government, yet this form of childcare is vital to enable working parents to return to work. Most clubs are in the position of having been forced to close from 20 March and are unable to open until the new school term in September - and even then it is unclear to what extent they will be able to operate - with the result that many clubs are now on the brink of collapse.”