Coronavirus (COVID-19)—report on challenges facing childcare market published

Coronavirus (COVID-19)—report on challenges facing childcare market published

The Institute for Fiscal Studies has published a report on the challenges facing the childcare market in light of the coronavirus (COVID-19) pandemic. During the nation-wide lockdown, only vulnerable children and children of key workers could access childcare, meaning fewer than 250,000 children between the ages of zero and four attended childcare on a given day, compared to the 1.4 million before the pandemic. The report warns that in the medium term, a fall in demand coupled with increased operating costs due to social distancing could ‘seriously hamper financial sustainability’ in the sector.

Other key findings include:

• an estimation that one in four private nurseries have been operating at a significant deficit, compared to 11% of providers pre-pandemic

• even with self-employment grants from government, an additional 30% of childminders earn less than £4 of income per £5 in costs

The full report can be accessed here.

Source: Challenges for the childcare market: the implications of COVID-19 for childcare providers in England

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