The UK’s Childcare Crisis: Why Nurseries Are Closing and What Needs to Change

As a former teacher, Wera is a passionate advocate for improving our education system, especially in early years provision. She believes investing in early childhood education is one of the most impactful steps we can make for the country’s future.

Wera has consistently fought for increased funding for high-quality childcare. She recognises its vital role in child development and addressing societal inequalities.

“A safe, fun early educational environment is one of the most important things we can give to a person. Getting this right gives children the greatest chance of reaching their full potential in later life.”1

By supporting both children and parents through well-funded early education, Wera believes we can unlock far-reaching benefits for the economy and society as a whole.

In her role as chair of the Childhood Trauma All-Party Parliamentary Group, Wera works closely with industry experts to champion early years development in Parliament. Locally, she regularly meets with early years providers to thank them for their dedication and to further understand the challenges facing the sector.

Across the country, nurseries are being forced to close due to a combination of underfunding and rising operational costs.

In 2023, Bath’s Midford Nursery unfortunately shut its doors after struggling to recruit and retain staff.2 In response, Wera challenged Claire Coutinho, then Minister for Children, Families and Wellbeing, over staff shortages in nurseries. She asked what the Government’s advice would be to parents who cannot find childcare and ensure her constituents do not have to go through this again. The Minister sidestepped the question, vaguely stating that the Government will choose to set out its plans for early years learning ‘as and when we can’.3

The closure of Midford Nursery reflects a larger issue. Over the past few years, the number of childcare providers in deprived areas has fallen by 10%, creating widespread ‘childcare deserts’.4 These closures leave families with limited options and exacerbate existing inequalities.

In 2023, Wera met with teachers from Twerton Infant School and Nursery and Alice Park Nursery to learn more about Early Years providers in the city and the children they support. Both schools discussed their continued struggles with staff shortages and widespread recruitment difficulties.

Responding to these concerns, Wera requested a debate in Government time on the chronic underfunding of schools. Most recently, in February 2024, she continued her advocacy by participating in a Westminster Hall Debate to discuss the matter.

Alice Park Nursery Wera Hobhouse with George Samios at Parliament
Alice Park Nursery
Wera Hobhouse with George Samios at Parliament. (Credit: Jess Taylor)

The importance of Early Years Education

The first 1,001 days of a child’s life are the most important for their development, laying the foundation for cognitive, emotional, and social growth . Early years settings, such as nurseries and childcare centres, provide structured environments that can nurture children’s development and help reduce inequalities.

By the age of five, up to 40% of the attainment gap- measured by comparing the educational outcomes of pupils eligible for free school meals with those who have never received free school meals- can already emerge.

High-quality early years education is key to closing this gap. It offers structured learning experiences, fosters social interaction, and enables early interventions for children who need extra support.

Current Crisis in the UK’s Childcare Sector

“The Government have decided to cut corners at the expense of children, rather than properly funding providers”6

The childcare sector in the UK is currently facing a crisis. Data from the Office of National Statistics and Ofsted reveals significant disparities in access to childcare across the country, with the most deprived local authorities the most likely to be childcare deserts.

Between 2018 and 2022, the number of childcare providers in the most deprived areas fell by 10%, with a 2% reduction in available places. In contrast, the least deprived areas saw a 4.3% drop in the number of nurseries, but a 5% increase in the number of places.7

One of the most pressing issues is the staff-to-child ratios in nurseries. In the March 2023 budget, the Government announced plans to reduce these ratios starting from September 2023. While some may argue that relaxing these ratios could reduce costs, it is clear that doing so compromises the quality of care and children’s safety, it is clear that doing so compromises the quality of care and children’s safety.8

  • “Staff-to-Child Ratios” → The legal requirement for how many childcare professionals must be present per group of children in a nursery to ensure safety and quality care.

The Conservative government’s focus on reducing staff numbers, rather than properly funding nurseries to meet operational costs, is not a sustainable solution. Most nurseries, particularly purpose-built ones, are designed with specific ratios in mind and cannot easily accommodate more children without risking safety and care quality.

In addition, the government announced that by September 2025, families with children as young as nine months will be entitled to 30 hours of funded childcare per week. While Wera acknowledges this as a positive step forward, she stresses that more needs to be done to ensure this expansion benefits all families, particularly those in the most disadvantaged areas. Without targeted investment in these areas, the government’s plan risks leaving the most vulnerable families behind.

“Childcare providers are a vital element of our society – giving children the best start in life and helping parents get out to work. Government Ministers need to get serious about supporting families and step in with a proper plan to save the childcare sector”9

St John’s Foundation and the Language for Life Program

Despite the proven importance of early years education, funding for these settings remains insufficient. Currently, early years providers receive just a quarter of the funding allocated to primary schools through pupil premium, which is designed to support disadvantaged children.

  • “Pupil Premium” → The pupil premium grant is funding to improve educational outcomes for disadvantaged pupils in state-funded schools in England.10

Locally, this issue is especially pertinent. According to the 2023 Strategic Evidence Base for BaNES report, only 34% of ‘disadvantaged’ pupils in the region met the expected standard in Reading, Writing and Mathematics (RWM) combined for the 2021/22 academic year. This is well below the national average of 43%.

Locally, initiatives like St John’s Foundation’s ‘Language for Life’ project are working to address these disparities. The project targets children aged two to four in early years settings across B&NES, focusing on early speech and language support.

Supported by B&NES Council and HCRG Care Group, the project has already shown impressive results. In participating schools, the percentage of children needing additional language support dropped dramatically from 84% to just 29%

This early intervention is vital, as strong language development plays a foundational role in learning. Without it, children are more likely to experience difficulties across the curriculum and struggle when they transition into primary school.

Wera has been a strong vocal advocate for prioritising early intervention programs like ‘Language for Life.’ Acknowledging the success of the scheme in Parliament,11 she urged the Government to give greater focus to early years education, particularly through the implementation of speech and language support initiatives.

INSERT: Early Years Language Development Clip 1 (in folder)

Childcare and Gender Equality: A Vital Investment for Families

“Nursery provision is an equalities issue”12

Underfunding has created a vicious cycle where nurseries struggle to stay open, staff are underpaid, and children’s needs may not be met. This financial imbalance affects not only the education of children but also for their families, particularly mothers.

Affordable childcare is one of the key factors in enabling parents, especially women, to return to work after having children.13 As it stands, the UK has one of the most expensive childcare systems in the world.14 This has significant economic and social implications.

Recently, the Missing Mothers report, revealed that women in their thirties are the biggest group leaving the teaching profession. The primary reasons cited are heavy workloads, difficulties balancing teaching with family commitments, and inadequate maternity pay.15

This pattern is not unique to education; many sectors face similar challenges. The lack of affordable childcare in the UK is a major barrier for women who wish to return to work after having children.

The underfunding of childcare has far-reaching implications. Not only does it affect children’s educational outcomes but it also exacerbates the gender pay gap. When parents, primarily mothers, are unable to access affordable childcare, they may be forced to work fewer hours, accept lower-paying jobs, or leave the workforce altogether. Investing in early years provision can break this cycle.

“It’s absurd that some parents are having to turn to credit cards or borrow money to afford nursery costs. But it doesn’t have to be this way. Improving our education system is one of the best investments we can possibly make.”

First Steps Nursery in Twerton
Moving Forward

Wera believes that the future of our education system, our economy, and our efforts to achieve gender equality depend on how we address the current crisis in early years education. By properly funding early years provision, we can not only give children the best possible start in life but also support parents, especially mothers, in returning to the workforce.

The government must take immediate steps to provide adequate funding for nurseries and childcare providers, addressing the underlying issues of accessibility, cost and staffing retention.


Bibliography

  1. Anna Fazackerley, Nurseries in England say new rules have reduced care to ‘crowd control’, The Guardian, Sep 14, 2024.
  2. Anna Wise, ‘UK gender pay gap widens as childcare costs worsen ‘motherhood penalty’’, The Standard, Mar 7, 2023.
  3. Carmen Aguilar García and Alexandra Topping, ‘Poorer families ‘locked out’ of big expansion in free nursery hours, analysis finds’, The Guardian, Nov 8, 2023.
  4. The Bath & Wiltshire Parent, ‘Bath MP praises Alice Park Nursery and calls for more support for families’, Sep 6, 2023.
  5. Wera Hobhouse, ‘Wera Hobhouse MP: The best investment we can make is in education’, Left Foot Forward, Oct 2, 2024.
  6. Larry Elliott, UK women priced out of work by lack of affordable childcare, PwC finds, The Guardian, Mar 7, 2023.
  7. Branwen Jeffreys, Teacher mums who leave profession fuelling shortages, BBC News, Aug 2, 2024.
  8. Seren Morris, What does childcare cost in the UK compared to other countries?, The Standard, Mar 9, 2023.
  9. Understanding Society: The UK household Longitudinal Study, ‘Childcare prices and mothers’ returning to work’, May 18, 2021.
  10. Department of Health and Social Care, ‘The best start for life: a vision for the 1,001 critical days,‘ Mar 25, 2021.
  11. Claire Coutinho, Maintained Nursery Schools, Jan 16, 2023. 
  12. BBC News, ‘Bath nursery forced to close due to lack of staff’, Jan 5, 2023.
  13. Wera Hobhouse, Nursery Provision: South-west England, Hansard, Feb 6, 2024.

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