The Department for Education has published research[i] which shows that childcare providers are struggling to cope with the cost of living crisis and one in ten think they may have to close in the next year.

In the Northwest, half of nurseries and just under half of childminders said their income did not cover their costs meaning that businesses are struggling to keep going. In the most deprived areas (which include many Oldham communities) 72% of nurseries said their income does not cover their costs. Childcare providers have raised fees to increase income: 62% have raised fees and 20% have increased other charges. Many have used their savings or business contingency reserves, taken out loans or delayed paying bills to balance the books.

Cost pressures include energy bills, rising food costs, increased staff costs and rent or mortgage payments.

The childcare sector is also losing staff. Half of nurseries reported one or more staff vacancy.

Neil Leitch of the Early Years Alliance, which represents childcare providers, said ‘When nearly half of providers say their income is not covering costs, one in ten say imminent closure is likely and the vast majority are reporting staffing challenges, then it’s clear that the existing system simply isn’t working….there’s no doubt that it is the years of government inaction that have created the current catastrophic situation.’

Councillor Shaid Mushtaq, Oldham Council’s Deputy Leader and Cabinet Member for Children and Young People said  ‘Action is needed now to support childminders and nurseries in Oldham. The Government’s own research shows that many nurseries and childminders are under threat. Instead of promising jam tomorrow by expanding a system over the next four years that simply doesn’t work for many families, the Government needs to pay enough to meet providers’ costs and help the most deprived families get good quality childcare. Too many children in Oldham don’t reach a Good Level of Development by the time they start school – better access to good quality childcare would help all Oldham’s children get the best start in life.’