More than half of private nurseries have increased their fees in the past year, and experts predict further rises are on the way as nursery owners struggle to make up the shortfall caused by insufficient funding for a flagship government policy. Official figures, published by the Department for Education (DfE) and analysed by Labour, show 53% of private nurseries in England have put up their fees in the past 12 months, along with around a quarter of school nurseries (28%) and childminders (25%). The widespread fee increases follow the implementation in September 2017 of a Conservative manifesto pledge allowing working parents of three- and four-year-olds to claim 30 hours of childcare a week during term time (38 weeks a year) for free, even if each parent earns up to £100,000. Nurseries and childminders repeatedly warned that the level of government funding allocated was insufficient and would force many childcare providers to raise fees, charge parents for “extras” they didn’t previously charge for – or go bust. The DfE research suggests at least half of the parents who took up the offer, believing they would receive free childcare, are now being asked by their provider to pay additional charges, such as for lunches, snacks, special activities and outings. Even excluding these charges, 48% of parents eligible for the funding are still having to pay at least some fees each term: £76.50 per week on average. Among these parents, one in seven (15%) are actually spending more on childcare now than they did before their child started receiving so-called free hours, while 16% are no better off at all. Neil Leitch, chief executive of the Pre-school Learning Alliance, which represents nurseries, said he was not surprised childcare providers were putting up their fees, which Labour predicts will impact over 700,000 children. “Systemic underfunding has left many providers struggling to break even, forcing them to choose between increasing fees and risking closure. And, with the national living and minimum wages set to rise next April, this financial pressure is only going to get worse. Only when ministers commit to increasing funding will providers be able to stop asking parents to pick up the government’s tab.” The research reveals it is predominantly better-off families who are benefiting from the extra £1bn a year set aside by the government to fund free childcare. While the majority (58%) of families who earn £45,000 or more have taken up the offer, just a quarter (26%) of those earning under £20,000 have done so, suggesting childcare remains unaffordable for many low-income parents. The government originally promised the offer would save working parents up to £5,000 a year per child. Commenting on the figures, the Labour MP and shadow early years minister Tracy Brabin said: “The Tories’ flagship offer simply isn’t living up the promises they made in the election, and the consequences are being felt by parents across the country. Fees are rising, free places come with hidden costs, and too many families aren’t eligible for the support they need – while nurseries and other providers are being pushed to the brink of bankruptcy.” Shazia Begum, 41, owner of the Brighter Futures nursery and pre-school in Malvern, Worcestershire, is one of those providers. She stopped paying herself a salary when the 30 hours offer was introduced. “It was either that or go bust,” she said. “If I had refused to offer parents 30 free hours, they would have taken their children to another provider – but the cost of providing those hours is higher than the government pays me.” She says she used to pay her staff more than the minimum wage, but can no longer afford to. “I feel worried about the future of the sector – to provide a good setting, you need to recruit good-quality, experienced staff.” Due to rising costs, she is planning to increase her fees in January but still does not expect to make enough to pay herself a salary. “Nurseries are being forced out of business by the government. I can’t afford to make any more sacrifices. If the government offers parents free childcare, why don’t they fund it correctly instead of making nurseries ask parents to pay?” Minister for children and families Nadhim Zahawi said: “This government is doing more than any before to support parents with the cost of childcare. We are investing record amounts – about £6bn a year on childcare support by 2020. This includes about £3.5bn we plan to spend this year alone on all our free early education offers, to make sure as many children as possible have access to high-quality care.”
Over four-year-olds , 28% of private nurseries in England have hiked their prices, alongside 28% of nurseries and 53% of childminders, found a study conducted by the Department of Education (DfE). After the government initially promised that free childcare would save working parents up to £5,000 a year per child, the visible benefits have been hard to spot. The Conservative manifesto pledge allowed working parents to claim the 30 hours of free childcare a week during term time but it seems families of a lower income have missed out. One in seven families are spending more on childcare since the Conservative set aside £ 1bn to bring this number down.