Blog: Building Resilience in your Childcare Setting
The Covid-19 pandemic and associated economic downturn has posed a serious threat to the childcare sector. Although we know that as parents/carers return to work, demand for quality, affordable, accessible childcare will peak once again, sustainability concerns are widespread.
There is a widely anticipated reduction in attendance and therefore fee income. The Coronavirus Job Retention Scheme and Self Employment Income Support Scheme have been a lifeline to retain valuable staff, the key assets of your childcare business, but as thoughts turn to re-opening, how childcare businesses can cover all costs through fee income alone is a major concern.
A cash flow forecast will help you stay on track to sustainability. It is used to predict income and expenditure for the year and help you anticipate and then make practical decisions and set processes in place to avoid financial shortfalls. Poor cash flow is one of the main reasons for business failure. It can also be used to demonstrate to funders that you have comprehensive financial planning in place, and to demonstrate your long-term sustainability (and/or short term need for financial support whilst new strategies to support sustainability are put into place). Clybiau Plant Cymru Kids’ Clubs has a short webinar, easy to use cashflow forecast templates and resources on funding, with support available from Childcare Business Development Officers (CBDOs).
Improving the affordability of your Childcare Setting will also help boost attendance, income and sustainability. Being registered with Care Inspectorate Wales (CIW) will allow you to also register with HMRC for: Tax Free Childcare (https://www.gov.uk/government/news/tax-free-childcare-top-things-childcare-providers-should-know), enabling eligible working parents to access a government contribution of 20% towards fees and; with Local Authorities for The Childcare Offer – when it resumes – enabling working parents/carers of 3-4 year olds to access 30 hours per week of fully funded early years education and childcare. CIW registration also provides reassurance of quality to parents, which you can use in the promotion of your setting. Clybiau Plant Cymru Kids’ Clubs has a marketing template you can customise to promote CIW registration as an indicator of quality and affordability.
CIW’s application to register has moved to a shorter and simpler online method, with which CBDOs can help.
Limiting your personal financial liability as business owners/committee members is also crucially important. This has been a worrying time for all businesses and insurance companies have not always paid out. In addition, some funders will only award grants to Settings that are incorporated (recognised as a legal corporation). Now is a good time to review your governance with our support and ensure owners/committee members are adequately protected. Whether managed privately or by a voluntary management committee, you can limit personal liability by becoming incorporated (e.g registering as a Charitable Incorporated Organisation).
To reflect on all aspects of your setting, the Out of School Childcare Assessment (OSCA) https://forms.gle/AYYo6yNX6h8PXRZh7 can be completed online and could also form part of your Quality of Care Review for CIW. This can help inform an action plan that can be completed with your CBDO to enhance the quality, sustainability and robustness of your childcare business.
Cwlwm partners all have sector specific tools, resources and staff to support financial planning, applying for funding, becoming registered with CIW and becoming incorporated as well as for other areas of your business.
Don’t forget to continue any new practice that has worked well during lockdown/reduced operation such as virtual meetings with staff or online engagement with families.
Your ability to revive and thrive in the coming months will be essential to children and working families and building business resilience will see you more likely to endure long term.
Alex Fudge,
Clybiau Plant Cymru Kids’ Clubs