A Government pledge to extend free childcare to all working parents in England could become a postcode lottery dependent on local capacity, councils have warned.
Research by the Local Government Association, which represents councils in England, revealed 88 per cent of authorities surveyed were concerned there would be significant nursery closures this year undermining sufficiency.
Louise Gittins, chairwoman of the LGA’s Children and Young People Board, said the extension of free childcare is “a positive step towards helping working parents manage the high costs of sending their children to a nursery or childminder”.
“However, we have serious concerns about the ability of local areas to secure nursery places, with capacity issues providing challenges to the universal rollout of the extended offer,” she added.
A survey of 98 local authorities in December and January suggested almost half (48 per cent) expected closures of early years settings last year to create risks to sufficiency in 2023.
“Insufficient income” to meet rising costs and “workforce-related issues” were among the key reasons behind some of the closures, according to the report.
The Government announced in the March Budget it would be expanding free childcare for working parents to cover all children under five, with the policy phased in from April next year.
At present, the 30 hours per week of free childcare in England is only available for children aged three to four years old.
But the LGA is concerned the improved funding rates will not be enough to ensure universal implementation of the extended scheme.
It called for councils to have stronger powers to commission provision centrally to ensure the right childcare is available in the right places and for the Government to go further and faster in addressing urgent workforce challenges in the sector.
And it wants a recruitment drive for the sector to be rapidly rolled out after its report found a lack of appropriate staff has increasingly prevented nurseries from being able to deliver to their full capacity.
Some settings have been forced to shut rooms or close temporarily for weeks, while others have had to limit places for children with more complex needs.
“Nurseries and childcare providers are already under massive pressure, grappling with severe financial and workforce challenges, which has seen staff numbers depleted and an acceleration in places closing,” said Ms Gittins.
“Alongside the improved funding rates, it is vital the Government’s planned recruitment drive tackles the staffing shortages and provides an opportunity for staff to progress and thrive in a fulfilling career.
“Councils will also need to be given the right levers to manage local childcare markets, given the significant rise in Government-funded places local areas will see.”
It comes as the organisation hosts its annual conference in Bournemouth this week.
The LGA analysis was carried out ahead of the Chancellor’s March announcement working parents in England with children as young as nine months would be entitled to up to 30 hours a week of free childcare.
The offer will be available to working parents of two-year-olds from April next year but limited to 15 hours.
From September 2024, the 15 hours will be extended to children from nine months and the full 30 hours for working parents of children under five begins from September 2025.
Figures released last week showed the number of childcare providers registered with Ofsted had decreased by 4,800 in the past year.
Neil Leitch, chief executive of the Early Years Alliance, warned early years settings are “already closing at an alarming rate”.
He said: “We have no doubt, therefore, that, in its current form, expanding the so-called ‘free childcare’ offers will only lead to further closures – and that rather than making it easier for parents to access high-quality early education and care, it will only make it harder.”
Megan Jarvie, head of the Coram Family and Childcare charity, said: “The extension of free childcare has the potential to be a game-changer for families struggling with childcare costs, but action is needed to make sure that there will be enough places for every family that needs it.”
A Department for Education spokesperson said: “We are rolling out the single biggest investment in childcare in England ever, set to save a working parent using 30 hours of childcare up to an average of £6,500 per year.
“To make sure there are enough places across the country we will be investing hundreds of millions of pounds each year to increase the amounts we pay providers to offer places and will be consulting on how we distribute funding to make sure it is fair across all areas of the country.
“We are also launching a new national recruitment campaign to support the recruitment and retention of talented staff and considering how best to introduce new accelerated apprenticeship routes so everyone from junior staff to senior leaders can easily move into a career in the sector.”
