| answer text |
<p>Ofsted publish data monthly on joiners and leavers in the childcare sector, which
we have used as a proxy for providers that may have closed.</p><p>Between 30 June
2020 and 31 December 2020, there were a total of 3,202 childcare providers who left
the Early Years Register across all provider types. However, this should be considered
in conjunction with those who joined the Early Years Register to understand the net
impact on the childcare market. Over the same time period there were a total of 2,340
providers who joined the Early Years Register. This data does not include nursery
provision within schools. Further data on leavers and joiners can be found here: <a
href="https://www.gov.uk/government/publications/joiners-and-leavers-in-the-childcare-sector"
target="_blank">https://www.gov.uk/government/publications/joiners-and-leavers-in-the-childcare-sector</a>.</p><p>Of
the childcare providers who left the Early Years Register between 30 June 2020 and
31 December 2020, 396 (12%) were located in the most deprived areas. Deprivation quintiles
are calculated from the Income Deprivation Affecting Children Index rank of the provider’s
address.</p><p>The early years sector has benefitted from the continuation of early
years entitlement funding during the during the summer and autumn terms in 2020. As
private nurseries typically rely on private income for a significant proportion of
their income, they are able to furlough their staff via the Coronavirus Jobs Retention
Scheme (CJRS). Further information can be found here: <a href="https://www.gov.uk/government/collections/coronavirus-job-retention-scheme"
target="_blank">https://www.gov.uk/government/collections/coronavirus-job-retention-scheme</a>.
As long as the staff meet the other criteria for the scheme, private nurseries are
able to furlough their staff via the CJRS if they have experienced a drop in their
income either from parents or the government. Eligible nurseries can also benefit
from a business rates holiday and can access the business loans as set out by my right
hon. Friend, the Chancellor of the Exchequer. Childminders are less likely to be employers
and therefore are less likely to be eligible for support via the CJRS. Childminders
may find the Self Employment Income Support Scheme more relevant. further information
can be accessed here: <a href="https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme"
target="_blank">https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme</a>.</p><p>There
is little evidence of current, actual, failure in the early years market. Whilst we
recognise that the early years sector has been affected by the COVID-19 outbreak,
we have not yet seen localised failure of the market at any time in any local authority.
Most importantly, we have not seen a significant number of parents unable to secure
a childcare place since early years settings re-opened fully on 1 June 2020.</p><p>We
continue to work with the early years sector to understand how they can best be supported
to ensure that sufficient safe, appropriate and affordable childcare is available
to those who need it now, and for all families who need it in the longer term<em>.</em></p>
|
|
