Childcare providers quizzed by Education Committee on sector’s workforce challenges
MPs question childcare providers from across England to hear about the challenges they face in recruiting and retaining staff to private and state-run nurseries.
The cross-party Committee also ask witnesses about the barriers to entry for people wanting to join the childcare profession as nursery staff or childminders.
Meeting details
In April 2022, a Department for Education (DfE) report found that nursery managers believe the state funding they receive to cover the 15 and 30-hours free childcare entitlements is too low, and has not increased with the rise in the National Minimum Wage. The report also highlighted issues such as low starting salaries (£14,000 on average), a perceived low status of the profession, and poor work-life balance.
The Committee asks childcare providers what changes they believe should be made to attract and retain staff in the long term, and about costs from taxes such as business rates and paying VAT on resources they need. There may also be questions on previous government proposals to change staff-to-child ratios from 1:4 to 1:5 in a bid to reduce staffing costs.
A DfE survey published in December 2022 estimated there to be 340,000 staff working in 60,000 early years settings. However, Ofsted data showed that the total number of childcare providers fell by 5,400 in the year to August 2022.
The DfE survey also found that the average hourly fee charged for children aged under 2 was £5.68 per hour, and for children aged 2 it was £5.72 per hour. Fees were slightly lower for pre-school children aged 3 and 4 (£5.60 per hour).
The IFS states that in 2021–22, childcare providers faced overheads that were 15% higher than before the pandemic, and estimated that costs will grow by a further 8% by 2024–25.
More information about the Education Committee’s support for childcare and the early years inquiry can be read here.