Sadiq Khan warns thousands of London's early years providers fear closure within a year

According to a new study, conducted by the Early Years Alliance (EYA) and Ceeda on behalf of City Hall, 64 per cent of nurseries, pre-schools and maintained nursery schools and 56 per cent of childminders indicated that they were at immediate risk of closure or potential closure in the next 12 months.

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Seven in 10 providers in the city’s most deprived areas say they are “struggling” compared with almost six in 10 providers in more affluent boroughs, the new report finds.

Researchers examined data from the end of the first lockdown to November provided by more than 500 nurseries and childminders. Overall, there are 10,288 early years providers across London including private, voluntary and independent settings (PVIs), maintained nursery schools and nurseries attached to primary schools.

The report states that the crisis has been caused by “inadequate” funding levels before the pandemic which have been exacerbated by the financial impact of Covid-19.

“The first nationwide lockdown saw a temporary rapid closure of childcare settings in London, with those that remained open facing significant overheads as well as substantial reductions in income,” it states.

A separate report by London Councils found that in one borough, which is not named in the report, 60 per cent of providers have accrued debts as a consequence of Covid-19 and 69 per cent expect to operate at a loss over the next six months. A further 51 per cent are considering redundancies.

Khan has written to Chancellor Rishi Sunak and Education Secretary Gavin Williamson calling on them to “adequately fund this vital sector”.

He also highlighted recent research by the Women and Equalities Committee which found that mothers were most likely to forfeit their jobs due to a lack of childcare.

Khan said: “The early years of a child’s life are crucial to their future development and this childcare is absolutely essential to support working parents, but this research exposes the extent of the crisis the sector faces in our capital.

“We know that working mothers are being disproportionately impacted by the pandemic and are more likely to have lost their jobs – the result of structural inequality that has long existed. That is why I am calling on the government to do everything in its power to support these key services, which are vital to London’s economic recovery, a lifeline for many of London’s working families, and a fundamental part of our duty of care to London’s children.

“The coronavirus pandemic has highlighted huge inequalities in our society and it is unacceptable that years of government underinvestment in the early years mean children and parents from the most deprived parts of our city are now at increased risk of being left behind.”

Neil Leitch, EYA chief executive, added: "It is deeply concerning to see that, despite the crucial role that nurseries, pre-schools and childminders in London have played supporting local children and families throughout the pandemic, an ongoing lack of adequate government support - combined with years of underfunding - means the majority will struggle to survive the next 12 months. What's more, given that we know early education is crucial to ensuring that all children are given the best possible start in life, it is particularly worrying that providers in more disadvantaged areas are at a significantly higher risk of experiencing financial difficulties than those in more affluent areas.  

"With the effects of the Covid-19 outbreak likely to be felt for some time, action is needed now to protect the sector. We urge the government to heed the findings of this important report and ensure that all providers, including those providing vital care and education in the capital, are given the support they need to remain viable throughout the pandemic, but also in the years to come.”