Hampshire nursery 'can't promise staff their jobs' - as three in ten fear closure over rising costs
A poll from the Early Years Alliance has seen 23% of early years settings admit they could face permanent closure over the next year
A nursery in Hampshire says it's unable to promise staff their jobs - as a poll reveals three in ten early years providers could close their doors over rising costs.
Squirrels Educare pre-school in Farnborough says closing could be a "worst case scenario", as the Early Years Alliance describes hikes in minimum wage and National Insurance, as well as a roll out of free childcare places, as a "perfect storm of challenges" for care providers.
A poll from the charity found 23% of early years settings could shut permanently within the next year over financial pressures.
Jennifer Clay, the director of Squirrels Educare pre-school, said current costs are "not feasible": "
"We reduce costs wherever we can because I don't want to reduce what we give the children.
"They deserve the development and all the wonderful resources and the extra curricular activities that we can offer them.
"I don't want to have to let any child or any family miss out on that or suffer but that is what was going to have to happen if we fulfil what the local authority and the government want us to do."
The findings come as the Government's expansion of funded childcare for working parents is being rolled out in England.
Working parents of children older than nine months are now able to access 15 hours of funded childcare, before the full rollout of 30 hours a week to all eligible families in September.
Jennifer continued that cost cutting includes looking for supplies second hand:
I spend a lot of time on free sites because actually we can't afford to buy new.
"Fundraising is great, but actually a lot of people don't want to give anymore because they can't afford it themselves."
Government must act "before point of no return"
Neil Leitch, chief executive of the EYA, said: "These survey findings should set alarm bells ringing across Government.
"At a time when ministers are looking to significantly expand the early entitlement scheme, we have a huge proportion of providers warning that the exact opposite is likely, with many forced to limit funded places or opt out of the offers entirely due to unsustainable financial pressures.
"While we of course recognise the need to ensure clarity and transparency for parents when it comes to additional charges for entitlement places, the fact is that this updated guidance has been implemented against a backdrop of severe and sustained underfunding, which the Government has yet to address, or even acknowledge.
"Add to this the impact of upcoming increases in both national insurance contributions and the national minimum and living wage, and you have a perfect storm of challenges for early years providers - one that many will not be able to survive.
"It is one thing to recognise the importance of the early years, but it is quite another to deliver the financial and practical support that settings need - and make no mistake, our sector needs it now.
"We therefore urge the Government to work with the sector and ensure that the early years gets the investment it needs to deliver on the promise made to parents - before we reach the point of no return."