Loss of childcare places highest in South West

The findings based on the statistics on childcare providers and inspections, published on Tuesday, show that 70 local authorities in England have seen a fall in early years places since August 2015, with some areas - including a number in the South West - seeing declines of as much as 25 per cent.

The latest figures from Childcare providers and inspections as at 31 August 2021 show that the number of childcare providers has continued to decline.

However, according to an analysis of the data by the Alliance, some areas in England have seen as much as a 25 per cent decline in early years places over the past six years.

The Government has repeatedly rejected concerns over the sustainability of the early years sector, said the Alliance.

Ofsted said that the number of childcare places offered by providers on the Early Years Register (EYR) has remained ‘broadly stable’ since August 2015.

However, while it is true that the number of early years places in England overall has remained largely unchanged since 2015, Ofsted data on the number of early years places in each local authority reveals that between August 2015 and August 2021:

• 70 out of 149 local authorities have seen the number of early years places decline over the past six years.
• Torbay has seen the greatest fall in the number of childcare places (by percentage drop) at 25 per cent, and a 20 per cent fall in providers.

Bournemouth, Christchurch and Poole, West Northamptonshire and North Northamptonshire were not included in the analysis as they were not formed as local authorities in 2015.

The data also shows that all local authorities in England have seen a decline in the number of early years providers operating since 2015, except for Hackney, which has gained 12 providers.

• Of the 10 local authorities with the largest decline in early years places, six are in the South-West: Torbay, Isles of Scilly, Dorset, Devon, Cornwall and Somerset.
• The other four areas are in the north of England - Darlington, Calderdale, Cumbria and the Wirral.

In comparison, all but one of the local authorities seeing the biggest increase in early years places are in London:

Source: Early Years Alliance analysis of Ofsted data on providers and places by local authority between August 2015 and August 2021

Due to the Covid-19 pandemic, Ofsted paused routine inspections in mid-March 2020. It restarted Childcare Register inspections in September 2020 and full Early Years Register inspections in May 2021. Regulatory activity and registration of providers have continued throughout the pandemic.

Commenting, Neil Leitch, chief executive of the Early Years Alliance, ‘Ministers have long argued that because the number of early years places available nationally has remained broadly consistent over recent years, concerns about the sustainability of the sector are unfounded. But as our analysis shows, the government’s decision to focus only on the national picture has masked huge regional disparities.

‘It is completely unacceptable that so many areas have suffered not only a huge loss in a number of early years providers operating, but also significant losses in the number of places available. Clearly if these trends are allowed to continue, we will see more and more families in such areas facing far less choice when it comes to early years provision – and in the worst cases, an inability to access any places at all.

‘The IFS report on education spending in England published today confirmed what we in the sector have been warning: that even recent increases in early years spending are almost certainly not enough to make up for the substantial increases in costs that providers are facing as a result of wage rises, national insurance contribution increases and other inflationary pressures.

‘If the Government wants to make sure that all children and families, no matter where they live, can access early education and care, it needs to invest what is needed to ensure that nurseries, pre-schools and childminding settings can deliver these vital services.’

A Department for Education spokesperson said, 'We are increasing the hourly rates childcare providers will receive from next year, reflecting the costs many employers face including rising wages for their staff.

'We have not seen councils reporting any sufficiency or supply issues, or any significant number of parents unable to secure a childcare place since early years settings re-opened fully in June 2020. This data also shows some councils have seen an increase in the number of non-domestic childcare settings.

'We are also investing millions to help create a new network of Family Hubs in 75 councils across England where parents can get support for their children, as well as in early years recovery, with a focus on improving speech, language and communication skills.'