Numbers of childcare providers plummet as recession hits
The number of nurseries, childminders and out-of-school clubs has dropped dramatically since last summer, official figures reveal, with early years organisations blaming the recession for driving providers out of business.
Ofsted statistics on the number of registered childcare providers and places in England show that there are now at least 8,181 fewer childcare providers than there were at the end of August.
At the end of December 2008 the number of group settings was down by 6,510 and there were 1,671 fewer childminders (see table, below).
Figures for the end of March, due next month, are expected to reveal a bleaker picture.
New figures
Ofsted's latest report is the first to group information on childcare providers according to whether they are registered on the Early Years Register, offering childcare for birth to five, or the Childcare Register, childcare for five to seven-year-olds.
It also shows whether they have chosen to register on the voluntary part of the Childcare Register, looking after older children.
The change to the way data is presented means it is no longer possible to see a detailed breakdown by type of childcare provider, for example, numbers of out-of-school clubs or providers offering full daycare by geographical area.
Full daycare, sessional providers, out-of-school clubs and crèches are now categorised under the heading of 'non-domestic childcare'.
The other categories are childminders, and the smallest category 'childcare on domestic premises', which accounts for just 66 providers and means four or more people looking after children in someone's home. The difference between this and childminding is the number of people involved in the care of children.
Categories of childcare
Previous Ofsted quarterly statistics were rounded up but figures are now based on how providers have chosen to be registered by Ofsted, either on the Early Years Register, for providers caring for children from birth to five, and/ or the Childcare Register, for providers looking after children from five to seven-years-old.
The data also includes providers who look after children aged eight and over who have joined the voluntary part of the childcare register.
Ofsted said the new categories complied with legal definitions for childcare providers which came into effect last September under the Childcare Act 2006.
An Ofsted spokesperson said, 'They are now categorised as childminders, childcare on domestic premises, or childcare on non-domestic premises. The category of childcare on non-domestic premises encompasses what were previously called full day-care, sessional day-care, crèches, and out of school clubs.
'From 1 September 2008 we changed our system of recording childcare providers in line with these new legal requirements, and we no longer identify provisions separately such as out of school clubs. Therefore, we are unable to provide information on the numbers, for example, of out of school clubs in England.'
The recession's impact
As Nursery World has reported, the economic climate is having a mixed impact on the sector, with some nurseries reporting a rise in the take-up of baby places as mothers cut short their maternity leave, while other parents take their children out of nursery because of redundancy (News, 12 March).
The National Childminding Association said it is monitoring numbers to help support childminders' businesses in the long-term.
Andrew Fletcher, NCMA director of communications, said, 'It is a concern that the number of childcare providers has declined across the sector, as any reduction in childcare provision reduces the choice on offer to parents. There could be a number of reasons for this, not least the pressures of remaining sustainable in difficult economic conditions.
'While we know there are still strong numbers of childminders joining every month, there are clearly sustainability challenges in operating in the current climate.'
