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Ofsted – Net loss of 300 nurseries in one year

Provision
There has been a net loss of 300 nurseries in the past year, according to the latest Ofsted statistics, with the number of childminders joining the sector the lowest recorded.
According to Ofsted there was a net loss of 302 nurseries between 31 August 2021 and 31 August 2022 PHOTO Adobe Stock
According to Ofsted there was a net loss of 302 nurseries between 31 August 2021 and 31 August 2022 PHOTO Adobe Stock

On 31 August, there 65,600 childcare providers registered with Ofsted, a decrease of 5,400 since 31 August 2021. 

However, while the number of providers has fallen by 8 per cent since 31 August 2021, the number of places has declined by 2 per cent.

Ofsted said that this was due to an increase in the number of places offered by each provider over time. On 31 August 2022, there were 1.28 million childcare places offered by providers registered on the Early Years Register (EYR).

Most of the overall decline is due to a loss in the number of childminders. Since 31 August 2021, more than three times as many childminders have left the sector – with 5,600 childminders leaving and 1,500 childminders joining, which Ofsted said was 'the lowest number of annual joiners to date'.

On 31 August 2022, there were 29,600 childminders registered with Ofsted. In addition to these, there were seven childminder agencies reporting a total of 1,300 childminders on roll.

Nursery losses

On the EYR there were 1,119 leavers (childcare on non-domestic premises) and 817 joiners, a net loss of 302 nurseries since 31 August 2021.

Of these losses during the previous 12 months, i.e between the end of August 2021 and end of August 2022, most took place in the most recent six-month period for which figures are available.

Between March and August 2022 there was a net loss of 229 nurseries (see chart below), suggesting closures could be accelerating.

During the same period, there was a net loss of 1,748 childminders.

There were 27,000 nurseries registered with Ofsted as of 31 August 2022.

Since 31 August 2019, the number of early years providers has fallen by 14 per cent (10,600).

Source: Ofsted – Childcare providers and inspections as at 31 August 2022

Inspections

During 2021/22, Ofsted returned to a full programme of inspections after the pause during the pandemic. Since September 2021, Ofsted said it has carried out around 11,700 EYR and 400 childcare register inspections, as well as 2,200 registration visits to prospective providers and 6,000 regulatory events, which include face-to-face visits and phone calls.

Around 9,700 full inspections took place of providers registered on the EYR. Of these, 40 per cent were first inspections of recently registered providers and about 10 per cent were inspections of providers previously judged requires improvement or inadequate.

Purnima Tanuku, chief executive of the National Day Nurseries Association (NDNA) said, ‘The Government is failing its youngest and most vulnerable children, with a net reduction of more than 300 nurseries in just one year. We rang warning bells in September when our research showed the rate of nursery closures had increased by 65 per cent in the summer months. This is worse in areas of deprivation where children most benefit from high quality early education.

Nurseries just cannot square the circle of paying soaring costs and wage bills with dwindling hourly funding rates from their biggest customer, the Government.

Recent Ofsted inspection results continue to worry the sector and show that providers are really struggling with high staff turnover and financial pressures. Ofsted must make sure their inspectors recognise these challenges when they carry out their inspections - it’s clear these are not being taken into consideration.

'It’s becoming much harder to get a good or outstanding judgement and the complaints procedure and the appeals system is not fit for purpose. If a nursery feels their judgement is unjust, how can they get a fair hearing when the same inspector reviews their own report? This must change.'

As at 31 August 2022, 96 per cent of childcare providers were judged good or outstanding at their most recent inspection.

However, the proportion of providers judged outstanding has decreased from 20 per cent to 15 per cent since 31 August 2019.

Tanuku added, ‘A further drop in the numbers of places mirrors local authorities’ concerns about sufficiency of childcare. This could be because more providers are either closing or reducing the numbers of funded places they can offer in an attempt to reduce their losses.

This data shows that chronic underfunding is crippling the early years sector.’

Neil Leitch, CEO of the Early Years Alliance, said, ‘What exactly is it going to take for the government to take action on the worsening crisis in our sector?  

The fact that we have lost 5,400 providers in just 12 months is a direct consequence of government inaction. Time and time again we have urged ministers to commit to the funding that the early years needs to survive – and now the sector is hurtling towards a catastrophe. 

The government continues to claim that because early years places remain comparatively stable on a national basis, all is fine – but our own analysis of today’s statistics reveal that in the last year alone, 110 local authorities have seen a fall in the number of places available to families, with 26 seeing declines of more than 5 per cent. What use is it to parents to be told that there are sufficient early years places across the country if there aren’t enough in their local area? 

The government had the opportunity to tackle this crisis at the recent Autumn Statement – but despite managing to somehow find an extra £2.3bn for schools, opted to completely ignore the early years. If this approach continues, there is absolutely no doubt we will continue to see further closures on an ever-increasing scale.

Ofsted – Childcare providers and inspections as at 31 August 2022 is available here