Is 30 hours of free childcare sustainable for your business?

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With the government confirming that it will publish the results of its 30 hours funding review next week (25th November), we ran a recent poll to ask whether you thought this would be sustainable for your childcare business. As expected, the overwhelming majority of providers answered “No”, however, 12% of you disagreed.

 

 

 

 

 

 

Here are just some of the comments we received about this:

No – it’s not sustainable

  • “I won’t be able to earn a living on 30 hours free funded spaces.”
  • “I would be working at a loss. I would be forced to close.”
  • “I will not be able to accept children requiring the funded hours.”
  • “Not sure I can afford to offer it.”

Yes – it’s sustainable

  • “It will hopefully increase our numbers of full time children. It will generate more income as funding is more per hour than our hourly rate.”

So, what’s the update on 30 free hours?

The Government has confirmed it will publish the long awaited results of its 30 hours funding review next week.

Childcare Minister Sam Gyimah made the announcement at Nursery World’s recent Business Summit in London, saying that the DfE will report back on their findings. This follows information gathered from nurseries over the summer on the cost of providing the free childcare places.

However, as Nursery World reported, most of the providers who responded did not give their figures, leaving the Department for Education unable to understand the costs of providing the free hours.

Sam Gyimah said, ‘We have been carrying out the funding review to understand the costs facing providers, which will allow us to set a level of funding needed to deliver high-quality childcare provision, while at the same time providing good value to the taxpayer.

“The review has been going on for six months. The results will be part of the 25 November Autumn Statement, which the Chancellor will be delivering for the whole Government.”

According to Mr Gyimah, 1,800 local authorities and providers have come forward to pioneer the 30 hours free childcare as ‘early implementers’.


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