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Nurseries and childminders that rely on parent fees risk closure after lockdown - study

Coronavirus Policy & Politics Provision
Childcare providers that rely on parents’ fees, rather than free entitlement funding, are particularly vulnerable to closure, which could lead to a childcare shortage, the Institute for Fiscal Studies warns in new research.
Lockdown has put a quarter of private nurseries at risk of significant deficit, says the research
Lockdown has put a quarter of private nurseries at risk of significant deficit, says the research

A report from the IFS highlights the extent of the financial crisis facing the childcare sector as a result of the coronavirus pandemic and warns that families could face a shortage of places.

It points out that many providers were already facing a difficult time financially before the crisis, but that the loss of fees from parents since March, when lockdown started, means that many providers are facing a difficult time staying open.

A total loss of income from parent fees would have put a quarter of private nurseries at risk of running a 'significant deficit' during lockdown. This compares to 11 per cent of providers pre-crisis.

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