NDNA offers recession tips to childcare providers

The move follows comments made at the NDNA's annual conference, held last Wednesday (10 December), by chief executive Purnima Tanuku, who said that nurseries were revealing a 'mixed picture' of the effects of the economic downturn.

Ms Tanuku said, 'Where employers have already made redundancies, providers have naturally seen a decrease in occupancy or reduction in sessions. Other areas have seen an increase where parents are looking for work, either returning to work early after maternity leave or full-time working. Other concerns for nurseries are bad debts and increased operating costs.'

The NDNA is putting together a panel of up to 120 childcare providers in a bid to understand how the recession is affecting daycare settings. It aims to publish relevant advice, including a factsheet on simple ways to cut costs, within the next few weeks.

Ms Tanuku also expressed concerns over the complexity of early years funding. Regarding the free early years entitlement, she said, 'The scheme offers significant benefits to children and families. But the major concern still remains that the funding does not cover the cost of childcare. Getting the free early years entitlement to function sustainably will be important as councils and providers adapt to further changes due to be applied in the next two to three years.'

However, Graham Archer, deputy director of the Childcare Division of the DCSF, who also spoke at the conference, said, 'The funding system built up over a number of years with a number of different objectives, and it has given us something quite complex.

'In January 2009 you can expect to see a refreshed childcare strategy document which will say more about the next stages for the free entitlement for two-year-olds and will bring more coherence to the whole agenda. As part of this I would expect to see measures aimed at making funding more coherent.'