Exclusive: PACEY Workforce survey finds childminders more confident than nurseries about the future

Findings from PACEY’s second workforce survey, shared exclusively with Nursery World, show nursery staff are less confident about their setting’s future financial prospects than they were two years ago, but confidence among childminders has grown.

The first PACEY survey on the state of the early years and childcare sector in England was published in June 2015 ahead of details on the 30-hour plans.

The latest survey finds that settings planning to offer the 30 free hours for three- and four-year-olds are also more likely to say they are confident.

The survey was conducted ahead of the release of the publication of new early years funding rates from April.

A total of 1,888 childcare providers, including nurseries, pre-schools, childminders and nannies, across England responded to the survey, carried out between 19 September and 9 November 2016. The findings are published in a report, Building Blocks 2017.

The report reveals ‘stark divisions’ between the experiences of childminders and nurseries. It shows that while 71 per cent of childminders taking part in the survey made a profit in the past year, just 20 per cent of nurseries reported doing so.

Moreover, close to 40 per cent of nursery staff did not know whether or not they had made a profit. A total of 33 per cent of all respondents said they broke even.

The biggest increase in costs for all providers over the past 12 months was related to food, followed by training, insurance and staff costs.

Close to half of all respondents, the majority of whom worked in nurseries and pre-schools, said their setting was likely to raise its fees in the next 12 months.

Future plans
When asked how likely it was that their setting will grow in the next year, for example by increasing staff and/or taking on more children, just over half (52 per cent) said they had no plans to expand. However, over a third said growth was likely.

Respondents from nurseries and pre-schools were more likely to say they will grow their setting, as well as those planning to offer the 30 hours.

A total of 80 per cent, regardless of setting type, said they plan to still be working in childcare and early years in the next year; however, 15 per cent said they did not know. These figures are relatively unchanged from the 2015 survey.

The main reason for leaving the profession for childminders was a lack of demand for places/lack of work available, while for staff from nurseries and pre-schools the reason was inadequate pay.

30 hours
More than 45 per cent of nurseries and pre-schools and 35 per cent of childminders said their setting was likely to offer the 30 hours.

A low hourly rate was cited as a barrier, along with paperwork and red tape and unreliable local authority payments.

According to the report, just 1 per cent of three- and four-year-olds take up their current free early education place with a childminder.

When asked what would make settings more likely to deliver 30-hour places, for all settings the single biggest incentive given was a higher hourly rate.

An improved payment system, for example more regular and/or up-front payments, was also cited as an incentive.