Blog: Recognition

I would like to begin this blog by thanking the childcare sector for your hard work and commitment during these unprecedented times, from those of you that have remained open for keyworker children to those, which have closed but still continue to engage both with ourselves and with children and families of your setting.

NDNA Cymru alongside our Cwlwm partners have previously voiced our concerns – both directly and via the partnership – to Welsh Government outlining the importance of recognising the childcare and play sector as an integral part of the foundational economy.

We need now, more than ever to see that recognition for the sector from the Welsh Government. This needs to include tailored support for the childcare sector that will enable providers to continue to support and develop our youngest children alongside the help provided for families. The sector needs to be recognised as a key part of the Welsh economy.

Sustainability was already a concern for many day nurseries in Wales before the outbreak of Coronavrius brought about widescale closures. We know that nurseries who are staying open to support key workers and vulnerable children are losing hundreds of pounds a week. At the same time, many who have had to take the difficult decision to close, fear they may not be able to re-open once we return to business as usual.

Whilst I am aware that both the UK and Welsh Government have released a number of support packages for businesses affected by Coronavirus, there remains a great concern that these packages will not provide adequate support to the childcare and play sector.

Below are some of the issues we have highlighted on behalf of the sector:

• Funding – Those who are able to remain open to support critical workers and vulnerable children will do so at a significant loss and should receive suitable funding to continue their service. Overheads continue to remain the same though the number of children attending (and income) is much less. Many providers are unable to build surplus funds, which would usually support them to remain sustainable through the Autumn term downturn, therefore childcare providers will have increased concerns about the sustainability of their businesses in the Autumn term.
• Insurance – many nurseries have been unable to make claims from their insurers for loss of business and we are aware future policies will write out Coronavirus altogether meaning a lack of cover for any future outbreaks
• Competition and Markets Authority (CMA) investigation – the approach announced by the CMA puts childcare settings between a rock and a hard place. The funding rates received are not competitive market prices and if nurseries take the heart-breaking decision to close, children and families will also lose out.
• Transition – possibility to increase the terms that the non-maintained sector have of funded early years provision to enable children to start school later, supporting the transition process and subsequently the children’s and parents’ well–being and reducing anxiety about the situation.
• Redundancies – A condition of the Economic Resilience Fund (ERF) was that redundancies would not be made whilst the Job Retention Scheme (JRS) was available. The parameters for the JRS have changed and therefore this needs to be considered not only in light of the ERF conditions, but also the impact that this may have upon the wider scale redundancies that may happen across the sector as a result of additional financial support being unavailable.

I am grateful for the engagement that providers have continued to have with us throughout this difficult time, as it has enabled us to informatively represent you as a sector during our ongoing discussions with both the UK and Welsh Government.

From all of us at NDNA Cymru and the wider NDNA team we hope you and your teams are keeping safe and well. NDNA Cymru will continue to work with the Welsh Government in order to secure the future of day nursery providers across Wales.