You are here: News Many childcare providers face big financial problems as a result of the pandemic
New research, funded by the Nuffield Foundation and carried out by a team of researchers at the Institute for Fiscal Studies, the University of Birmingham, Frontier Economics, Coram Family and Childcare, and the University of Surrey, analyses how childcare providers’ finances are likely to have been affected by the lockdown, and how they might look going forward. It finds that more than double the number of private sector nurseries than pre-pandemic would have been running at a significant deficit during lockdown, with less than £4 in income for every £5 of costs. This is despite government support through continued public funding and the substantial furlough and self-employment schemes.
Megan Jarvie, Head of Coram Family and Childcare said:
Childcare is a crucial part of our infrastructure allowing parents to work and helping to boost children’s incomes. Although the pandemic has shown how reliant we are on childcare for a reliable workforce, this analysis also shows the financial knock the already troubled childcare market has faced as a result of lockdown.
While so much is still unknown about what happens next, it is essential that Government make sure that every family are still able to access the childcare they need and that the cost burden of lockdown is not passed on to parents.”
For more information, please contact Emma Lamberton, Communications Manager, Coram at emma.lamberton@coram.org.uk / 0207 520 0427 /07908 827908 or Bonnie Brimstone, Head of Communications, Institute of Fiscal Studies at bonnie_b@ifs.org.uk.
About Coram Family and Childcare
Coram Family and Childcare works to make the UK a better place for families by bringing together what we learn from our on the ground parent-led programmes and our research to campaign for solutions that parents want and need. We focus on childcare and early years to make a difference to families’ lives now and in the long term.
Latest news
Over half of local authorities in England anticipate permanent closure of childcare providers after Covid funding ends
21 December
Over half of local authorities in England anticipate permanent closure of childcare providers...
Response to Early Years Alliance report finding that one in six childcare providers could close by Christmas
30 October
New research conducted by the Early Years Alliance has found that one in six nurseries and...
Response to Children's Commissioner's 'Best Beginnings'
17 July 2020
In response to the Children's Commissioner for England's call on Government to make...
Statement from Coram Family and Childcare: Nursery closures
18th March 2020
In response to the recent announcement about nursery closures, Coram Family and Childcare have...
Childcare costs surge at over double the rate of inflation
26 February
Britain’s parents are paying 5% more for childcare for the under-twos than they were one year...
London families now face annual childcare bill of £8,600
26 February 2020
Parents in London now pay an average of £165.47 per week, or £8,600 per year, for a part-time...