The data is published on the same day as the Early Years Alliance released documents revealing that Government ministers were aware of underfunding three- and four-year-old early entitlement places for years.
According to the Government statistics, childcare providers on the Early Years Register have fallen from 74,130 at the end of December 2020 to 71,535 childcare providers at the end of May 2021. This amounts to a loss of 2,595 childcare settings in just five months.
‘Joiners and leavers in the childcare sector’ shows that the majority of providers to close this year were childminders, with numbers dropping by 1,349.
In the last 11 months from June 2020, the sector lost 1,807 childminders (5.2 per cent of the total) along with 370 group settings (1.6 per cent of all settings on the Early Years Register).
Alliance chief executive Neil Leitch said that the figures show the consequences of the ‘shameful decision’ to underfund the early years sector for years.
‘Every nursery, pre-school and childminder is of huge value to the community they serve, the parents they support and the children they educate. That so many quality providers have fallen by the wayside is a tragic and yet totally inevitable result of this Government’s early years policy. If these figures don’t open the eyes of ministers to the need for a funding review, who knows what will.’
Jonathan Broadbery, the National Day Nurseries Association’s director of policy and communications, called for urgent financial support for providers and a review of early years funding.
‘These are very worrying figures, showing the impact of the pandemic on a sector that has seen years of underfunding,’ he said.
‘These figures follow on from the publication of Government papers that show they were aware of the risks to the sector as far back as 2015. The impact of the pandemic has made a tough situation even worse for providers and families alike.
‘Our previous analyses have shown nursery closures increasing year on year even before Covid, with areas of deprivation being hardest hit. It is precisely those areas where children can benefit most from the access to high quality early education that nurseries can provide.
‘It’s clear we need an urgent injection of support to providers and a full review of early years funding. Parents are now calling for this, providers need it to happen and the evidence supports it. This review is essential for providers to be able to support the educational recovery of our youngest children at a crucial stage of their development.’
Commenting on the figures, Tulip Siddiq, Labour’s shadow minister for children and early years, said, ‘Labour has repeatedly warned that thousands of childcare providers could shut their doors forever without better support.
‘This worrying data shows that our worst fears are being realised, with children, parents and our economy suffering as a result of the Government’s chronic underfunding and lack of pandemic support.
‘The Government is failing to listen to families and must now take urgent steps to prevent further childcare closures and rebuild this essential infrastructure after a decade of neglect.’
The Department for Education was approached for a comment.