Labour says targeted financial support for childcare sector is 'essential' for the country's economic recovery

Catherine Gaunt
Wednesday, July 15, 2020

Without extra financial support for the childcare sector, many nurseries and childminders will close, putting the country's economic recovery at risk, Labour has told the Government.

Shadow education secretary Kate Green (left), and shadow early years minister Tulip Siddiq, visited LEYF's Bessborough nursery in Pimlico on 16 July to highlight the need for targeted support for the childcare sector
Shadow education secretary Kate Green (left), and shadow early years minister Tulip Siddiq, visited LEYF's Bessborough nursery in Pimlico on 16 July to highlight the need for targeted support for the childcare sector
The party is calling for the early years sector to receive the targeted support it needs, to help providers cope with substantially reduced income and higher costs during the coronavirus pandemic.

Childcare settings were left out of the Government's catch-up plan funding for schools, announced last month, and are unable to claim for support for ‘exceptional costs associated with coronavirus’, such as extra cleaning or staff required for safety, which schools are able to claim for.

During a visit to London Early Years Foundation (LEYF) Bessborough nursery in Pimlico, Tulip Siddiq MP, shadow minister for children and early years, warned that mass childcare closures could lead to many parents, particularly mothers, losing their jobs, setting back the country's economic recovery from the coronavirus pandemic, which will rely on people being able to return to work.

'It was a pleasure to visit Bessborough Nursery and Pre-School and hear from parents about just how important childcare is to them, both for the development of their children and so that they can get back to work,' she said.

'Childcare is absolutely essential for working parents and to our economic recovery from coronavirus. But it has been ignored by the Government in this crisis, with the early years sector consistently excluded from support packages.

'We were already losing hundreds of nurseries and childminders every month before this crisis hit due to years of underfunding. We can’t afford for any more to close, but that is precisely what will happen unless the Government targets support properly on sectors like childcare.

'It’s time for ministers to get serious about supporting families in this pandemic and step in with a proper plan to save the childcare sector.'

June O’Sullivan, CEO of LEYF, said, 'The staff at Bessborough Nursery and Pre-School and other LEYF nurseries have done an amazing job during this pandemic by providing a fourth emergency service to both the children of key workers and the most vulnerable.

'Nurseries rely on occupancy to survive. However, with relatively low levels of occupancy due to coronavirus – it is very difficult to stay afloat. I have to check every day that we have enough money to keep our nurseries going and very concerned that some nurseries, particularly in disadvantaged areas, may be forced to close for good.

'The early years sector is crying out for help and recognition from the Government in this time of crisis. Nurseries are a vital infrastructure to the economy by allowing parents to go to work whilst helping people out of poverty. If the Prime Minister is committed to getting Britain up and running, then this must start with our nurseries.'

Research by the Early Years Alliance of 3,000 pre-schools, nurseries and childminders in April found that 25 per cent of respondents felt that it was 'somewhat unlikely' or 'very unlikely' that they would be operating in 12 months' time.

As of 9 July, Government figures show that just 25 per cent of children that usually attend in term time have returned to early years settings since they were able to reopen to more children on 1 June.

Commenting, chief executive Neil Leitch, said that the early years sector had already been 'struggling' before coronavirus, and that with 14,000 providers closed since 2015, it was 'simply astounding' that the Government had not acted.

'We have long argued that the current lack of government support for the childcare sector is likely to hugely damage the country’s chances of economic recovery,' he said.

'The fact is that without urgent Government support, the joint impact of years of underfunding and the coronavirus pandemic means that we risk losing thousands more nurseries, pre-schools and childminders in the coming months - and there is no doubt that this will have a significant impact on the ability of parents to access quality childcare, and of mothers in particular to return to work. 

'If the Government is serious about supporting families, protecting jobs and safeguarding the economy, there is no better action it could take than investing to ensure that the early years sector can remain sustainable not only in the short-term, but for generations to come.'

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