Nursery closures threaten free childcare 

Nearly nine in 10 councils fear that nursery closures will undermine capacity ahead of the extension of the 30-hours free childcare scheme, research for the LGA shows. 

Councils are supportive of the Government’s reforms, but are concerned that improved funding rates will not be enough to ensure universal implementation of the scheme in England and Wales. 

The Chancellor announced in March that every child aged from nine months to five years, in an eligible working family, would be entitled to 30 hours of free childcare each week by September 2025. 

The LGA’s research, by Isos Partnership, found 88 per cent of councils are concerned that nursery closures in 2023 will be significant and undermine sufficiency, while 40 per cent of councils saw a spike in nurseries closing in 2022. The report also found a lack of appropriate staff has forced nurseries to close temporarily for days or weeks, and that recruitment and retention challenges were greater in disadvantaged communities.

Cllr Louise Gittins, Chair of the LGA’s Children and Young People Board, said: “The extension of free childcare is a positive step towards helping working parents. 

“However, we have serious concerns about the ability of local areas to secure nursery places, with capacity issues providing challenges.

“Nurseries and childcare providers are already under massive pressure, grappling with severe financial and workforce challenges.

“Alongside the improved funding rates, it is vital the Government’s planned recruitment drive tackles the staffing shortages.

“Councils will also need to manage local childcare markets, given the significant rise in government-funded places local areas will see.”
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