New DfE research reveals 鈥減erfect storm" of challenges putting the future of the early years sector at risk

New research published by the Department for Education today has revealed the extent of the pressures facing nurseries, pre-schools and childminders in England. 

The series of reports on the impact of Covid-19 on the early years sector, provider finances and workforce recruitment and retention show the extent to which the pandemic, staffing challenges and sustained government underfunding have impacted on early years settings across the country. They reveal that:

  • 72% of private and voluntary nurseries and pre-schools have lost staff since the start of the pandemic, with 40% reporting a turnover rate of over 25% 
  • 47% of private and voluntary nurseries and pre-schools say the main reasons for staff leaving is for better pay, while 60% say that those leaving are leaving early years sector entirely 
  • 54% of nurseries and pre-schools and 49% of childminders report that their total costs have notably increased since before Covid-19 
     
  • 34% of nurseries and pre-schools have used business contingency reserves to manage their setting finances, while 24% have used savings intended for future improvement. 49% of childminders have had to use their personal savings 
     
  • Only 39% of private providers and 21% of voluntary providers were in financial surplus in 2021. For childminders, this fell to just 19%. 

The reports also state that setting managers 鈥渋dentified low funding as one of the main causes of instability in their settings鈥 and that they raised concerns that the relaxation of ratios would be 鈥渁n unsuitable approach that could impact on the quality of childcare provision and increase workload and dissatisfaction among staff鈥. 

Commenting, Neil Leitch, CEO of the Early Years Alliance, said: 

鈥淎s these reports show, there has never been a more difficult time to run, manage or work in an early years setting.  

鈥淎 combination of inadequate government funding, severe staffing challenges and the ongoing impact of the pandemic has created a perfect storm of challenges 鈥 one that has left far too many settings on the brink of permanent closure.

鈥淔or years, we have warned the government that without urgent action, the early years sector would be left in crisis 鈥 and now, here we are. And yet, rather than look at what steps it could take to actually support the early years, the government is wasting time looking at deregulation and ratio relaxation, despite the fact that this will worsen the recruitment and retention crisis, lower quality and make absolutely no difference to costs for parents.

鈥淲hat we need is a clear, comprehensive strategy for the early years sector, one that prioritises the provision of quality early education alongside affordable childcare for parents, and recognises that substantial investment is needed to make any of this possible. Anything less is just a waste of all our time.鈥