UK nursery market value expands to £4.1bn
The UK children's nurseries market has continued to expand despite the recession and was worth £4.1bn in 2008, with a 7.8 per cent year-on increase, according to market analysts Laing & Buisson.
At a London conference to unveil the results of its annual survey, senior economist Philip Blackburn said, 'Market expansion has slowed but continues despite the recession. Nursery closures are likely to peak in 2009 and a 1 per cent decline is expected. The next quarter will be a difficult one.'
Laing & Buisson anticipates that as Government expansion comes to an end, a cautious, small-scale expansion of the market may begin.
The report said the driving force in the future would be the growth in employer funding for childcare.
Stephen Kramer, managing director, Europe, at the Bright Horizons nursery chain, agreed. He said, 'Creating a family-friendly environment is a key issue for employers. They can derive enormous benefits from linking with an established provider to provide a workplace nursery, which doesn't even necessarily have to be on site. It can be a difficult sales process for providers, but once the message gets across, employers realise what can be achieved without a huge investment on their part.'
In the conference keynote address, Graham Archer, deputy director of the childcare division at the DCSF, underlined the updated Childcare Strategy (News, 28 January).
He said there would be a national price and quality comparison website, giving parents the chance to compare the cost and services of providers online (see page 6). He also highlighted the possibility of linking free entitlement funding to outcomes.
Paul Brosnan, managing director of Casterbridge Care and Education, asked for clarification on the level of current Government investment in childcare. He disputed the 'additional £60m' which was quoted for extending the entitlement to two-year-olds, saying 'the maths just doesn't add up'.
