Hundreds of settings closing doors as 30 hours looms

The data, obtained by the Champagne Nurseries, Lemonade Funding (CNLF) campaign group, which has 13,925 members, relates to four local authorities, in which a total of 313 settings closed.

It comes amid increasing financial pressures on providers, in many cases reduced or stagnant funding for free places, and ahead of the introduction of the extended 30 hours of free childcare in September.

As part of the campaign, which was launched last year by a group of nursery owners to oppose the Government’s policies on the free entitlement, members have been contacting their local authorities for information on the number of settings that have closed their doors since 2016.

According to the responses, in Oxfordshire alone, 119 childcare settings opened while 248 closed last year, resulting in a net loss of 129 settings. Between January and February 2017, a further 58 closed.

Nursery World contacted Oxfordshire County Council, but it refused to either confirm or deny the number of closures. However, a spokesperson said there has been a decrease in the number of providers due to a reduction of childminders.

Cross-country

Figures obtained by CNLF suggest that in Taunton and Somerset, 99 childcare settings have closed in the past 14 months.

However, Somerset Council told Nursery World that over the same period, 65 childcare providers, including child­minders, have closed, while 31 have opened. This is a net loss of 34 settings.

In Kent, since March 2016, 95 private, voluntary and independent (PVI) nurseries and pre-schools and 162 childminders have closed their businesses. However, 93 PVI settings and 103 childminders opened, resulting in a net loss of 62 settings.

A Kent County Council spokesperson said, ‘The early years and childcare market both nationally and in Kent is always subject to fluctuation, as there are always new provisions opening and some closing.

‘Although there has been a net reduction in the number of childminders, which is a national trend, the number of group provisions is basically constant. 

‘Childcare provisions can close for all kinds of reasons, including lack of demand, when there are more places within a geographical area than are required by the number of children, financial sustainability and poor quality.

‘It is rare in Kent for a provider to close due to poor quality, as currently just under 97 per cent of group provisions and just over 97 per cent of childminders are judged by Ofsted to be Good or Outstanding.

‘Additionally, group providers particularly can change their name and/or status, which presents as both a closure and an opening, having therefore a net effect.’

There have been further closures in Rotherham. The council confirmed to Nursery World that since April 2016, 31 childminders and one nursery have closed. Another nursery is no longer operating, but has not cancelled its registration. In the same period, one new nursery has opened and 14 childminders have registered with Ofsted. This is the equivalent of a net loss of 30 settings.

To increase the number of childminders in the area ahead of the introduction of the 30 hours, Rotherham Council launched a recruitment campaign at the end of last month.

A council spokesperson said, ‘There is still significant interest in childminding in Rotherham with over 45 individuals in various stages of interest, some of which have attended initial briefing sessions, some of which are currently going through the Ofsted registration process.’

Figures for Hampshire were not available at the time of going to press, but two providers told Nursery World they are to cease operating this year because of the introduction of the 30 hours (see case studies).

The findings echo those of the latest Ofsted statistics for 31 August-31 December 2016, released last month, which showed a further decline in the number of childminders and a slight fall in the number of nursery settings.

Pattern of decline

Jo Morris, spokesperson for CNLF, said, ‘We have been hearing very similar stories from a range of providers; they are worried about the future sustainability of their businesses.
‘Based on their concerns, we began collecting information on how many settings have opened and closed in each local authority since January 2016; the results so far have been concerning.

‘The figures from Oxfordshire County Council are a real worry. Although a small number of settings also opened, the overall loss was significant.

‘While there are some local authorities that have not seen such substantial losses, the general pattern is a decline in numbers across all of those we have heard from.’

She added, ‘We are currently looking at legal challenges to get the legislation around the 30-hour scheme looked into. More and more providers are telling us that they will not be offering the extended entitlement because they do not believe that it is viable for them to do so.’

Case studies: Hampshire childcare providers closing

Anchors Nursery School, Hook

The 18-place nursery, which is rated Outstanding and has been operating for 21 years, is closing in July.

Owner Eve Wort told Nursery World that the main decision behind the closure is the upcoming 30 hours. She fears the extended entitlement will exacerbate problems already being experienced with the 15 hours offer, such that operation is no longer sustainable without compromising the quality and nature of care.

‘I am desperately sorry for the children, parents and staff, but I don’t agree with the incentives of the Government through the “free” entitlement. They are encouraging parents to put their children in settings for longer hours without any link between the nature of provision and its costs.’

Ms Wort added that not offering the 30 hours but remaining open is not a sustainable option as parents who are eligible for the ‘free’ hours will take them up elsewhere, and larger settings in her area are already preparing to offer the extended entitlement.

The nursery owner said from this month, her setting will see a drop in funding from £4.44 to £4.36 per hour, per child.

She added, ‘Since I started my training at Norland College, and working in the childcare sector for almost 40 years, a lot has changed. Childcare settings have less freedom than they used to. As a result, there is less variety in provision.’

Hampshire childminder

A childminder in Hampshire said after nearly ten years in the role she has decided to close her business because of the ‘stress and expectations’ of the 30 hours that is being put upon the sector.

In a letter to Nursery World, she said, ‘I have absolutely loved every minute of my job until the stress and expectations of the 30 hours “free” childcare was put upon us.

‘I chose to childmind so I could be at home with my two children and I feel very lucky to have spent all these years with them. However, my fear now is the future of those children I will no longer be looking after.

‘Are they meant to be passed from pillar to post to enable them to fulfil their promised 30 “free” hours?’

She added, ‘We are expected to work from 6am-8pm seven days a week on almost half of the national living wage. I would like to see the powers that be work the hours we do on the money we get paid.’

Hampshire County Council response (We have added this here online, as it was received after we went to press.)

'During 2016, Hampshire County Council recorded that eight independently owned and operated nurseries and pre-schools  across the county closed. However, during the same period 23 providers opened for business, either as a start up operation or by the sale of a business to a new owner or change of business type.
 
'This information should be noted in the context that, as of January 2017, there were 689 nurseries, pre-schools and childcare settings in operation. Of the 31,202 childcare places for under 5s in Hampshire, the eight closures account for 216 spaces (less than one per cent of all places available). Children attending one of the eight pre-schools that have closed, will have found a place with an alternative provider.'

The council confirmed that their figures do not include childminders.