Fall of more than 4,000 childcare providers in a year

During the last year alone, 4,000 childcare providers were lost – the biggest fall since the end of August 2015.

The latest official Ofsted figures show that there has been a 22 per cent drop in the number of early years settings during this time period – 19,100 settings - according to official figures.

While Ofsted said that the number of places in England has remained ‘broadly the same’, there has been a disproportionate loss in places in the most deprived parts of the country.  

This is despite the fact that between 1 April 2021 and 31 March 2022, the least deprived areas had more of a decrease in the proportion of providers, compared with the most deprived areas.

At the same time the figures show there is more childcare provision in better–off areas.

Of the 68,000 childcare providers registered with Ofsted on 31 March 2022, 10,900 (16 per cent) were located in the most deprived areas. This compares with 14,800 (22 per cent) of providers that were in the least deprived areas, indicating that childcare providers were not evenly distributed across areas that have different levels of deprivation.

Meanwhile, analysis of the figures by the Early Years Alliance has found that overall 70 local authorities have seen a fall in early years places over the last five years (since 31 March 2017).

In total, 18 local authorities have seen a fall of more than 10 per cent. Of the 20 local authorities that have seen the highest increase in places over the last five years, 14 are in London.

The Alliance compared the Early Years Register places figures in the local authority tables of the 31 March 2017 and 31 March 2022 releases, and calculated the percentage change.

Source: Early Years Alliance analysis of Childcare providers and inspections as at 31 March 2022

Neil Leitch, chief executive of the Early Years Alliance, said, ‘‘It is incredibly concerning that the early years sector lost 4,000 providers over the course of a year, the largest decline in settings since 2015/16. 

‘While the government continues to argue that the overall number of early years places in England remains stable, the decision to focus only on the national picture masks enormous regional disparities. Our analysis of today’s figures reveals that nearly half of all local authorities have seen a fall in early years places over the last five years, with one in eight seeing declines of more than 10 per cent.’ 

Key findings

• Between 1 April 2021 and 31 March 2022, there was a net overall decrease of around 4,000 childcare providers, representing the largest decline since 2015–16.
• There were 68,000 childcare providers registered with Ofsted on 31 March 2022, down 3,000 – 4 per cent - since 31 August 2021.
• Childminder numbers have continued to fall

Childminders

There were 31,400 childminders on 31 March 2022, down by 2,300 (7 per cent) since 31 August 2021. This continues a downward trend in number of childminders, with 16,600 (35 per cent) fewer than on 31 August 2015.

However, Ofsted highlighted the role of childminder agencies, stating that as of 31 March 2022, childminder agencies reported a total of 1,100 childminders on roll. 

‘No doubt about the severity of the crisis’

Leitch added, ‘For years now, we have warned that without urgent government action, and crucially, greater investment, more and more providers would be forced to close – and looking at these statistics, there can be that our sector is now facing. What’s more, with childminders once again representing the majority of provider closures, it’s clear that the government must do much more to stem the flow of these vital education professionals out of our sector. 

He added that the fact that 96 per cent of settings remain good or outstanding is was ‘a testament to the commitment and professionalism of our workforce. But it is clear that without urgent support, what is currently a dire situation could become catastrophic.’  

Helen Donohoe, PACEY policy advisor, said,'These concerning figures confirm what we already knew - the sector is facing its most challenging period with largest drop in early years and childcare providers in more than six years, driven mainly by the sustained decline in childminders.

'Despite the significant challenges facing them, practitioners clearly remain committed to provide a high-quality service for children and families, with 97 per cent of childminders receiving good or outstanding at their most recent inspection, an increase on the previous year. But without urgent action to address the quantity of practitioners joining and remaining in the sector, families will soon lose out on the benefit of this quality, flexible provision.'

'The Prime Minister’s recent commitment to "make it easier to be a childminder" needs to be accompanied by meaningful action that addresses underfunding, low morale and low earnings in the workforce.'

Ofsted inspections

The latest figures also reveal a slight fall in Ousted grades among early years providers. At their most recent inspection, 96 per cent of all childcare providers on the Early Years Register were judged either good or outstanding, down by 1 percentage point since 31 August 2021. 

The National Day Nurseries Association said it had received many examples over the past six months from their members who felt that their inspections were ‘unfair and ill judged.’

Chief executive Purnima Tanuku said, ‘We also feel there is an inconsistency of inspection and that it very much depends on the inspector whether nurseries get a fair hearing or not.

‘Today we have seen the full extent of the challenges the early years sector is facing.

‘The decline in numbers of providers and also the reduction in quality of provision – particularly in areas of disadvantage – is a huge concern.

‘A sudden jump in those who require improvement or are inadequate must mean that either there is an inconsistency of inspection or that nurseries are really struggling with staffing requirements following the two years of the pandemic. 

‘The reduction in numbers of providers bears out our own research that more and more nurseries are forced to make the heart-breaking decision to close as a result of inadequate government funding and staffing challenges. Any nursery closing is one too many and devastating for the whole community.

‘We will be raising this urgently with the Department for Education and with Ofsted to make sure that all settings are treated fairly and with compassion. And we will continue our battle for funding to meet spiralling costs of delivering high quality early education and care which is crucial for all children to reach their full potential.’