The sustainability of childcare in London, published last week, said that 'demand for quality, convenient and affordable childcare' continued to outstrip supply.
The Daycare Trust conducted a survey of London's Early Years Development and Childcare Partnerships and 60 providers in private, local authority and voluntary settings. It found that one day nursery closed for every four that opened, and one after-school club closed for every two that opened.
Childminding was found to be especially volatile, with one childminder ceasing work for each one setting up in business.
Launching the report at the House of Commons, Daycare Trust director Stephen Burke challenged childcare providers to lobby for change by using 'the ammunition this report provides'.
The key factors affecting the development and sustainability of provision were identified as a lack of affordable care, a shortage of premises, staff recruitment and retention issues, insufficient business planning, and 'uncertain and cumbersome funding streams'.
The EYDCPs said a lack of premises was the major issue, due to shortages of land, suitable buildings and locations, complex planning processes and high London rents. The report recommended that London boroughs worked with the Association of London Government and the London Development Agency (LDA) to develop guidance for planners 'to streamline and clarify' planning for new and expanding childcare settings.
The report also called for the LDA to aid recruitment and retention by working with local authorities and training agencies to subsidise both initial and ongoing training of the childcare workforce. It found a lack of thorough business planning across the sector, especially in childminding, and recommended that the LDA work with the boroughs and Business Link to subsidise the costs of business skills training for all childcare providers.
The report called for changes to the tax credit system to reflect the higher childcare costs in the capital, and for Children's Information services to promote the childcare element of the Working Tax Credit to parents.
The report is on the website www.gle.co.uk/research.htm.