Alliance comments on new IFS report into the financial impact of Covid-19 on childcare sector

Commenting, Neil Leitch, chief executive of the Early Years Alliance, said:

"We welcome these findings from the IFS which reinforce what we have long warned about the dire financial state of the childcare sector in England.

"As the report rightly states, nurseries, pre-schools and childminders were already struggling long before the pandemic as a result of sustained government underfunding. Now with the additional challenge of significant falls in parent fee income as a result of the coronavirus outbreak, many childcare providers are unsure if they will be able to survive for much longer - our own research from earlier this year found that one in four feared closure within twelve months.

"Despite the overwhelming evidence that urgent action is needed, the government has so far failed to provide the transitional funding this sector desperately needs to remain sustainable in the short term, nor has it been willing to commit to the investment needed to ensure that providers can stay viable in the long term.

"If the government is serious about re-booting the economy, it needs a sustainable early years sector to ensure that parents have access to childcare they need in order to work. We urge the government to listen to the experts, look at the evidence and accept that urgent action is needed if this vital sector is going to survive the next few months and beyond."