The 2007 Childcare and Early Years Providers Survey, carried out forDCSF by BMRB, found that the financial position of providers had'worsened', with the number of children's centre nurseries losing moneyrising from 37 per cent in 2006 to 52 per cent last year, while 7 percent made a profit.
It also revealed that daycare settings in children's centres had thehighest average annual expenditure - 196,000 compared to 116,000 in childcare settings overall - and paid staff an average of9.30 an hour, while employees of other full daycare providersearned an average of 6.90.
Steve Alexander, chief executive of the Pre-School Learning Alliance(PLA), said the 'pressing issue of sustainability' had been brought into'sharp focus by the findings'. The charity's 'overarching concern' wasthat childcare providers were 'paying the price of inconsistentintervention in the childcare "market".'
He said the survey had demonstrated the fallibility of the Government'sstrategy, which hinged on the belief that 77 per cent of all children'scentres, which are located in deprived areas, should operate withsufficient numbers to make childcare sustainable.
'The policy drive of getting parents into work through the provision ofchildcare has not yet resulted in demand for the large amounts ofadditional childcare being established in areas of deprivation. Thischallenges the sustainability of the provision and is a prime example ofmarket interference,' he added.
The PLA also voiced concern about the survey finding that just underhalf of all full daycare in centres is run by local authorities, despiteDCSF guidance that this should only happen as 'a last resort'. MrAlexander said this was 'evidence that local authorities are functioningas both market manager and supplier, which is surely a conflict ofinterest'.
Meanwhile the survey revealed that there were a total of 112,600childcare and early years providers in England, supplying a total of2,494,000 places in 2007.
A total of 96,400 settings were childcare providers and 16,200 wereearly years providers in maintained schools.
It said there was a 'continued steady increase' in the number of fulldaycare providers to 13,600, up 74 per cent since 2001 and up 7 per centon 2006. Sessional providers had 'declined' by 9 per cent since 2006 to8,700; after-school clubs had increased by 11 per cent to 8,500; andholiday clubs fell by 9 per cent to 5,800.
The National Day Nurseries Association (NDNA) noted that daycarevacancies had risen to 18 per cent and chief executive Purnima Tanukuemphasised that a minimum occupancy level of 80 per cent was 'essentialfor a nursery to remain viable in the long term'. The survey said thatthe highest rate of vacancies - 29 per cent - was among the 59,800'active' childminders.