“Councils are extremely concerned about the financial viability of early years providers, many of whom are operating at a loss in order to provide vital childcare for our critical workers and most vulnerable children."
Responding to the Department for Education announcement that councils can move free childcare entitlements funding between nurseries and early years settings during the coronavirus outbreak, Cllr Judith Blake, Chair of the Local Government Association’s Children and Young People Board, said:
“Councils are extremely concerned about the financial viability of early years providers, many of whom are operating at a loss in order to provide vital childcare for our critical workers and most vulnerable children.
“Despite this helpful flexibility, the overarching issue remains that there is not enough money to both support providers who remain open, and make sure those who have closed can survive.
“Providers who have taken the difficult decision to close have already been affected by the change in guidance around the Coronavirus Job Retention Scheme issued hours before the scheme opened. This has put extra pressure on a sector that was already struggling.
“The Government needs to provide additional funding to make sure that no provider loses out financially for staying open, and to make sure we have all of the childcare places we need going forward to make sure people can get back to work when the time comes.”