Last week, we ran a story about the warning from PricewaterhouseCoopersthat the worst of the recession is yet to come for nurseries (News, 22October). More proof of this delayed effect comes in the NDNA survey wereport on in this issue (News, page 6).
Many settings are freezing staff pay rather than putting up fees toparents, and could risk losing employees or not being able to pay forthose who gain higher qualifications. The idea of having a graduate tolead practice in every setting could start to look rather forlorn.
Meanwhile, more parents are struggling financially or being maderedundant, and levels of bad debt are rising. The temptation to justtake the free entitlement at a nursery and fill in other hours withinformal care from friends and relatives is obviously strong, and it isthis that could hit settings hardest, leaving them with the part oftheir service that doesn't pay its way.
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