64,0000 childcare places lost during winter lockdowns

Research has shown that more than twice as many childcare places have been lost during the winter lockdowns than in the first six months of the pandemic.

New data from Ofsted, analysed by the Women’s Budget Group, shows that childcare providers have been closing at a concerning rate, with 3.6 times more providers (7,566) closing between Sep-Mar 20/21 than in Mar-Aug 2020.

In the six months up to March 2021, there were 14,385 fewer childcare places and 3,292 fewer providers in England. This represents a 4.4 per cent net loss of childcare providers and 1.1 per cent net loss of childcare places. This decrease is being largely driven by childminders leaving the market.

New research published today by the Local Data Project run by Women’s Budget Group shows that the availability and affordability crisis in childcare is being exacerbated by the pandemic and subsequent childcare closures.

Women’s Budget Group analysis shows that families are expected to spend a significant proportion of their income on childcare costs with evidence suggesting that mothers’ jobs and earning potential are more likely to be sacrificed when childcare is unaffordable.

For those under the age of two in Great Britain, full-time childcare costs absorb 49 per cent of women’s median earnings while part- time childcare takes up 63 per cent of women’s salaries.  

State support in the form of free-entitlement hours only starts for most children once they reach three. But even with childcare state support, childcare for three- and four-year-olds is still between a fifth and a quarter of women’s salaries with women spending on average 24 per cent of their earnings on part-time childcare.

Childcare costs continue to rise faster than wages, with childcare fees having increased four per cent in 2020, according to data from Coram Family and Childcare.

Hana Abid, policy officer at Women’s Budget Group, said: “The childcare closures many feared at the start of the pandemic are materialising. During the Autumn and Winter lockdowns of 2020/21, over 7,500 providers left the sector and in March 2021 there were 64,000 fewer places than in August 2020. Demand is expected to go up after ‘Freedom Day’ and once people return to the office many parents might struggle to find childcare available for their children. The closures, combined with the ongoing affordability crisis, are likely to have an impact on parents’ – especially mothers’ – ability to remain in their jobs. The government must urgently intervene to save the sector and fully covering the provision cost of the ‘free hours’ should be the minimum. Investing in a free universal high-quality childcare system would have benefits across the economy and be truly transformative for millions of children, in line with the levelling-up agenda.”