Ofsted – net loss of 400 nurseries and tens of thousands of childcare places in one year

The latest data on childcare providers and inspections as at 31 March 2023, published today (29 June), shows there were 4,800 fewer childcare providers at the end of March compared to the same time the previous year.

• Deprived areas hit the hardest as nursery closures increase

The statistics, which are rounded up to the nearest hundred, take into account the number of leavers and joiners to the sector, providing a net figure.

Because of this, the net loss of nurseries actually appears smaller due to an increase in the number of non-domestic settings not on the early years register. Forgoing this figure, there are actually 651 fewer nurseries registered with Ofsted compared to last March.

Jonathan Broadbery, director of policy and communications at National Day Nurseries Association (NDNA), who called the figures a 'real wake up call for Government ahead of the expansion of the funded hours', explained, 'Looking at the data for those delivering early years places, the picture appears even worse with a net loss of 650 pre-schools and nurseries.

'These figures back up our own analysis which showed another jump in the rate of closures among nurseries and with 98 per cent of providers saying funding rates do not cover their costs it is clear why this is happening.'

Childcare places

According to the statistics, the number of childcare places also fell by 2 per cent overall. As of 31 March 2023, there were 1.27 million early years places, a fall of 24,500 places over a 12-month period.

Ofsted said that the number of places had not decreased at the same rate as the number of providers as there had been an increase in the average number of places offered by nurseries (childcare on non-domestic premises).

Key findings

According to the figures, on 31 March this year there were:

• 63,200 registered childcare providers, down by 4,800 (7 per cent) since 31 March 2022.
• 349 fewer nurseries (childcare on non-domestic premises) since last year.
• 3,500 fewer childminders compared to last year. As of March, there were 27,900 childminders registered with the inspectorate.
• 27 million early years places, down by 24,500 or 2 per cent since last year.

A breakdown of the statistics show at the end of March, there were 26,900 nurseries (childcare on non-domestic premises) and 27,900 childminders.

The Early Years Alliance said the figures show the 'sector is reaching a point of no return.'

Inspection grades

Of the 7,600 full inspections carried out of early years settings between September 2022 and March 2023, 10 per cent were rated outstanding, 75 per cent good, 7 per cent requires improvement and 8 per cent inadequate, reveal the statistics.

Nearly three-quarters (73 per cent) of providers that were previously judged requires improvement or inadequate improved to good or outstanding at their next full inspection.

Ofsted says that the ‘inspection outcomes of providers are likely to vary depending on their previous overall effectiveness judgement, with those previously judged good or outstanding more likely to receive these grades at their next inspection’.

Because of this it said the percentage of providers achieving certain grades can vary year on year.

Nursery schools

Looking specifically at state-funded nursery schools, of which there are a total of 383 in England, the data shows as of 31 March 2023:

• 61 per cent were judged as Outstanding.
• 36 per cent were Good.
• 2 per cent were graded as ‘Requires Improvement’.
• 1 per cent Inadequate.