Almost nine in 10 early years providers set to increase fees this year
By Rachel Lawler
Most early years providers (89%) are likely to increase their fees for families this year, according to a new survey from the Alliance.
The Alliance asked 1,156 providers about their plans for the next year and almost nine out of every 10 said that they would 鈥減robably鈥 or 鈥渄efinitely鈥 increase their fees this year. Those who had not yet increased their fees but had an idea of how much they would increase reported an average increase of 8%.
The survey also found that more than a third of pre-schools, nurseries and childminders say it is likely that rising costs will force the closure of their setting within the next year, with a quarter (25%) describing this as 鈥渟omewhat likely鈥 and almost one in ten (9%) stating it would be 鈥渧ery likely鈥.
Inadequate funding
More than four in five (83%) survey respondents stated that the level of government funding they receive for the three-and-four-year-old early entitlement offer is less than the cost of delivering places, while nearly three quarters (73%) said the same about the two-year-old offer.
As a result, around half (51%) of settings surveyed recorded a loss in the last year with the mean average loss amounting to nearly 拢14k in the last 12 months, while around two in ten (22%) broke even and just over a quarter (26%) recorded a profit.
Nearly all of those surveyed (99%) said the government isn鈥檛 providing enough financial support to early years settings.
Staff wages
One provider said: 鈥淎s an employer, we understand the need to pay staff a fair wage that is reflective of the current costs of living. However, as a business, this money has to come from somewhere and we are concerned about the pressure this may put on our setting and operating costs 鈥 We are reluctant to increase our fees because of the cost-of-living and the pressure that will put on our families, but we feel we have no choice.鈥
"Sector in crisis"
Commenting, Neil Leitch, CEO of the Alliance, said: 鈥淭he early years sector in this country is in crisis. As our survey findings clearly show, current levels of government funding are nowhere near enough to support the delivery of affordable, sustainable quality care and education. As a result, nurseries, pre-schools and childminders are being left with an impossible choice: substantially increase fees for parents and carers or go out of business altogether.
鈥淲ith inflation still sky-high, and the national living wage set to increase by record levels in just a couple of months, this situation is only going to get worse unless the government takes urgent action.
鈥淭he government talks about the importance of education, of giving children the best start in life, of supporting families and of encouraging people back to work. What possible reason, then, do ministers have for continuing to completely ignore the very sector that does precisely that?
鈥淓nough is enough. 新澳门六合彩官网开奖 deserve better, parents deserve better and, crucially, children deserve better.
鈥淚t is vital, therefore, that the upcoming Spring Budget includes a clear plan for the future of early education and childcare in this country, underpinned by the substantial additional investment needed to ensure the sustainability of the early years. The sector simply won鈥檛 survive anything less.鈥