Number 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, as early years organisations blame 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.
Figures for the end of March, due next month, are expected to reveal a bleaker picture.
Ofsted's latest report is the first to group information on childcare providers according to whether they are registered on the Early Years Register, covering from birth to five, or the Childcare Register, from five to seven years old.
The data also includes providers who look after children aged eight and over who have joined the Voluntary Childcare Register.
The change to the way data is presented means it is no longer possible to see a detailed breakdown by, for example, type of childcare provider, numbers of out-of-school clubs or providers offering full daycare by area.
Full daycare, sessional providers, out-of-school clubs and creches are now categorised as 'childcare on non-domestic premises'. The other categories are childminders, and 'childcare on domestic premises', which means four or more people working in someone's home.
Previous Ofsted quarterly statistics were rounded up, but figures are now based on how providers have chosen to be registered by Ofsted.
Ofsted said the new categories complied with legal definitions for childcare providers which came into effect last September under the Childcare Act 2006.
A spokesperson said, 'The category of "childcare on non-domestic premises" encompasses what were previously called full daycare, sessional day-care, creches, and out-of-school clubs. We no longer identify provisions separately. Therefore, we are unable to provide information on the numbers, for example, of out-of-school clubs in England.'
The National Childminding Association is monitoring numbers to help support childminders' businesses. 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 provision reduces the choice for parents. There could be a number of reasons for this, not least the pressures of remaining sustainable in difficult economic conditions.'
A DCSF spokesperson said Ofsted's registered childcare providers and places figures from August 2008 and December 2008 were not comparable. 'The fact that those totals differ does not mean childcare provision has shrunk markedly over the four-month period. The difference may be due to a number of factors, including: schools no longer having to register provision for children aged three and above if they are directly providing early learning for at least some of their own pupils; that only out-of-school providers for undereights are now obliged to register; and that creches are now exempt from compulsory registration.'
REACTION
Steve Alexander, chief executive of the Pre-School Learning Alliance, said, ‘The new categories are misleading from the purpose of overall trends. It’s difficult to se this as an improvement.
‘The figures suggest a reduction in providers and this is a concern in light of the investment in childcare and sufficiency duties for local authorities.
‘The net decrease in the overall number of providers is of sufficient concern for market managers to delve more. Sustainability is a challenge across the sector. I suspect it’s in areas of greater disadvantage where there are sustainability issues.
‘The Pre-School Learning Alliance now has daycare in over 100 children’s centres, and the majority of parents prefer part-time care. From our viewpoint, what we think is going on is a resurgence of sessional care as parents move away from daycare. Anecdotally, our books are full with sessional care.
‘The current downturn might weaken the demand for full daycare. The rhythms of family life better suit part-time daycare and don’t fit into an 8am to 6pm provision. The current figures mask that change. If you seriously take on board parental choice, 8-6 is not going to meet the demands of most parents. There is a clear message to Government about the importance of choice.’
Purnima Tanuku, chief executive of the National Day Nurseries Association, said, ‘While we understand that it is important that Ofsted does not collect and store data that it does not need, we do think it is vital that access is available to figures that demonstrate trends among different types of providers.
‘For example, it is important to see where there is a growth or fall in nurseries and where these are regionally. Such data is also useful to the DCSF and other bodies, and we question who will now collate this information centrally.
‘Now all childcare is grouped under non-domestic premises, this not only means that previously high performing childcare could be seen as scoring lower for quality due to the influence of other sectors, but it is also difficult to identify which sectors could need additional support.
‘This is also a concern as some parents may automatically assume that figures relate to their own type of childcare and believe that there has been a fall. Although it may not necessarily be the role of Ofsted to provide this information, we do think it is very important that it is available so there is a national picture available of childcare across different types of provider.’
FURTHER INFORMATION
'Registered childcare providers and places in England, December 2008' is at www.ofsted.gov.uk
Registered Childcare Providers and Places 31.12.08
Providers Places
Childminders 61,929 299,569
Childcare on:
non-domestic premises 29,690 1,076,639
domestic premises 66 4,516
Home childcarers 4,516 -
All 96,201 1,376,878
Source: Ofsted
