In the absence of greater Government support, affordable daycare has put the brakes on developing the childcare workforce. Higher salaries are essential to allow us to develop the workforce, but with 70 per cent of turnover going on salaries - up from 40 per cent in 1992 - this would lead to unaffordable fees.
Pay is the fundamental workforce issue that the Government must address.
While childcare workers subsidise the cost of childcare by accepting low salaries, true workforce development will not be achievable, and the quality and viability of provision is at risk.
The recruitment of nursery staff is exacerbated by competition from Sure Start local programmes, Neighbourhood Nurseries and extended schools. These settings are able to pay higher salaries because they not only don't have many of the costs of mainstream day nurseries such as business rates, but they also have the support of targeted funding.
The NDNA fully supports the need for higher salaries. However, 85 per cent of provision is in the private sector, whose hands are tied when it comes to raising salaries because it is unable to trade freely when competing with Government-subsidised provision. Take the example of VAT and business rates. Providers pay full VAT on all refurbishment, but are unable to recoup these costs.
There are several ways the private sector could be supported to deliver affordable childcare. The creation of new childcare places in disadvantaged areas could be zero-rated, based on the concessions that already exist in regeneration areas. Also, all childcare could be classed as zero-rated for VAT. This could stimulate and support the development of new places as VAT is a non-recoverable cost.
The NDNA supports the Government's vision of high-quality, affordable childcare. But childcare tax credits will not be enough to support the professional workforce to which we aspire. Until a higher level of funding comes into the sector, we will not see the huge benefits that investing in early years can bring to children, families and society as a whole.
