Analysis by the National Day Nurseries Association (NDNA) of government statistics on the closure of early years settings shows a 65 per cent increase in nursery closures between April and July compared with the same months last year.
The figures buck the trend of more settings closing from September onwards, NDNA chief executive Purnima Tanuku said, adding that “the summer term is normally the busiest time of the year for nurseries before four-year-olds leave to start school”.
With energy prices increasing and inflation expected to exceed 13 per cent in October, Tanuku warned that “this academic year could see record-breaking numbers of closures leading to a catastrophic reduction in places”.
Tanuku said: “As we enter the new school year, our nurseries across the country are seriously worried about how they will make it through this winter.
“Most nurseries are small businesses and, similar to the picture in other sectors, these are hugely impacted by rocketing fuel costs, inflation and chronic underfunding. But nurseries have also had to pay unfair business rates which tax the space they give children to grow, explore and develop.
“We are expecting minimum wages to go up again as low-paid workers grapple with inflation in double figures. Meanwhile qualified early years practitioners are leaving the sector to take up better-paid work elsewhere, leaving nurseries struggling to recruit.
“All nurseries’ challenges can be sourced back to government policy, offering parents so-called ‘free’ childcare places, then paying only part of the cost of delivering them. If your biggest customer isn’t paying the going rate that makes it difficult to survive.”
She added that an increase in funding rates of less than four per cent per child does not match inflation, leaving settings in the most deprived areas at greater risk of closure due to their reliance on funded places.
“Children from lower income families are most at risk of falling behind their peers by the time they start school and never catch up. High-quality early education is the best way to support them. They must be able to access places to give them the best chance in life,” she said.
