Childcare platform Childcare.co.uk says a third of childcare providers (33%) believe they may have to close their practices permanently in the next six to 12 months, as they deal with reduced capacity, rising operating costs and government support ineligibility.

A survey of more than 1,600 providers found that nearly four-fifths (78%) of providers believe the government hasn’t given enough financial support to the early years sector, while four-fifths (81%) stated they were currently operating at a loss.

Richard Conway, founder of Childcare.co.uk, said: “As the lockdown becomes increasingly less restrictive, many in the UK can see the light at the end of the tunnel. However, for many childcare providers it’s difficult to predict when things might start looking up for them, especially when they’re faced with challenge after challenge.

“As a platform which is heavily involved in both the parent and provider community, we know the struggles both have had to endure throughout lockdown, and we don’t think many can deny that the early years sector needs additional support and clarity. It would be devastating to the economy if a third of providers were to close within the year, so I think it’s time for the government to step up and support the sector that facilitates working families and childcare development.”

Date published: 29 July 2020

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