DfE figures show 4,000 early years providers have closed in the last two years
Katy Morton
Thursday, December 9, 2021
There has been a loss of around 4,000 early years providers in the last two years, resulting in 7,300 fewer childcare places, according to new data from the Department for Education (DfE).
The latest Survey of Childcare and Early Years Providers, published today (9 December) reveals there are an estimated 62,000 providers, down from 66,000 in 2019.
A breakdown of the data shows more childminders have closed than any other provider with 3,900 fewer operating this year than in 2019. A further 200 private providers have left the sector, 700 voluntary providers and 600 school-based providers. According to the figures, there has been no change in the number of maintained nursery schools.
It comes after Ofsted figures, published in June, revealed more than 2,500 childcare providers in England closed this past year.
Looking at childcare places, the figures show there are an estimated 1,553,900 registered places, compared with 1,546,600 two years ago. The DfE claims the overall number of childcare places has ‘remained stable’ despite a reduction in the number of childminder places. It says that ‘The reduction in the number of childminders has been offset by small increases in the total number of places reported by group-based and school-based providers’.
The figures also reveal there are 15,600 fewer childcare practitioners than in 2019, reflecting the ongoing workforce crisis.
In 2021, the DfE estimates there is a total of 328,500 early years staff, down from 344,100 in 2019.
Providers were also asked about spare capacity. Seven in 10 (70 per cent) group-based providers reported having spare places in their full day provision. Private providers were more likely than voluntary providers to have spare capacity.
Almost half of childminders (49 per cent) reported having spare capacity on average across the week.
The data is based on a survey of childcare and early years providers between March and July this year. At the time of the survey, the Government’s Job Retention Scheme was still in operation.
Group-based providers reported a total of 3,800 members of staff on full-time furlough and a further 10,200 on part-time furlough.
'This confirms our research that early years providers are becoming more financially unsustainable'
Purnima Tanuku, chief executive of National Day Nurseries Association (NDNA), said, 'This report confirms our research over the past two years about the numbers of early years providers as more and more become financially unsustainable.
'Fewer settings means that providers are delivering more places on average. The knock-on effect is being seen in the workforce crisis across the sector as everyone is having to recruit from smaller pool of entrants into the sector.'
- The latest Childcare and Early Years Providers figures are available here
