Blog: Partnership Working and Rent
The outbreak of Covid-19, whilst bringing with it many challenges, has also demonstrated the amazing community spirit that exists across Wales, and how individuals unite to support each other and valued services within their community.
Clybiau Plant Cymru Kids’ Clubs has always advocated for partnership working between Out of School Childcare Clubs and the owners of their rented venues, whether it be schools, private landlords or church/community building committees. Within a recent blog, we focused on the need for Schools and Childcare Providers to work in partnership to meet the needs of their local community and to enable school based Out of School Childcare Provision to re-open following the Pandemic.
In a recent survey conducted by Clybiau Plant Cymru Kids’ Clubs, 92% of Out of School Childcare Clubs anticipated that there would be a drop in take up of places when they were able to re-open for the wider public. Most Childcare Providers are currently reviewing policies and procedures to determine how they can follow social distancing guidelines as well as forecasting potential income and expenditure to see whether they can run in a sustainable way. With limited funding available to the majority of the Out of School Childcare Sector outside of the Coronavirus Job Retention Scheme and Self Employment Income Support Scheme, Providers are reliant on having sufficient income (through fees) to cover essential expenditure (staffing, insurance, rent, professional fees and consumables).
One valuable way in which schools, landlords, Local Authorities or committees can support the survival of local Childcare Providers is by temporarily altering fees charged for utilising their premises. Very few Out of School Childcare Providers make a substantial profit outside of that which is taken up by core costs. With a significantly reduced income anticipated, either due to having to reduce capacity in the short term whilst social distancing measures are required, or due to factors that may limit take up later in the year (rising unemployment or continued parental home working), it is likely to take time for Childcare Providers to recover financially and build back up to pre-Covid income levels.
As a landlord, you may have been able to apply for financial support such as the Business Rates Relief Grant, some of which could be utilised to support community focused ventures operating from your premises such as Out of School Childcare Clubs to allow them to run sustainably during this challenging period. A community venue in Cardiff has chosen to take this route and is subsidising the rent of the Childcare Provider using their hall by the percentage that they have had to reduce their capacity by to meet current social distancing requirements.
Where possible, landlords/schools/committees could look at temporarily reducing rent charged to valuable community assets even where a grant has not been accessed. Supporting Childcare Providers during this critical period will enable them to take the time needed to revive whilst supporting parents/carers in your community to return to employment. Meetings between landlords and Childcare Providers to communicate effectively, discuss challenges and potential resolutions, even if this is committing to a rental charge freeze for the remainder of the year rather than offering a reduction, will hopefully reduce the likelihood of quality Childcare Providers running unsustainably, being forced to delay re-opening or closing completely.
The Early Years, Childcare and Play Sector will play an essential role in the economic recovery following Covid-19 and so it is imperative that collectively we recognise their value and support these businesses to survive.
Naomi Evans
South East Wales Regional Manager