Two years ago, I opened my nursery with a simple belief: every child deserves access to high-quality early education, regardless of their family’s income. Today, that belief feels increasingly unattainable.

Every week, I have conversations with parents who are forced to make difficult decisions. Do they keep their child in full-time nursery and face financial strain, or reduce hours and risk their employment? Some withdraw their child entirely –  not by choice, but because they simply cannot afford to continue.

Meanwhile, the government promotes its expansion of “free” childcare as a solution. The reality? It’s pushing nurseries closer to financial instability, making childcare less accessible for many families, and leading to a loss of experienced staff in the sector.

The reality of “free” childcare

A common misconception is that childcare is free in the UK.

While parents of three- and four-year-olds (and some two-year-olds) receive funded hours, the government funding does not cover the actual cost of care.

• The average government funding rate for a three- or four-year-old in Cambridgeshire is £5.80 per hour per child. 
• The actual cost to provide high-quality childcare is closer to £8 per hour. 
• This results in a £2.20 per hour shortfall for every child, every day.

The National Day Nurseries Association (NDNA) reports that there was a 50% increase in nursery closures in the 2022-23 academic year compared to the previous year, highlighting the financial strain on providers. 

Purnima Tanuku OBE, Chief Executive of NDNA, has observed: “We have been very carefully monitoring nursery closures since 2017 when 30 hours of funded childcare was first brought in. We’ve seen a trend of nursery closures and this year’s findings show that this is not slowing down.” 

The impact on families

A report by the Institute for Public Policy Research (IPPR) and Save the Children reveals that two-thirds of England’s poorest families are missing out on childcare. The study found that only 36% of the poorest parents use formal childcare, compared with 73% of the highest-earning families. 

This disparity forces many parents, particularly mothers, to reduce their working hours or leave their jobs entirely, exacerbating gender inequalities in the workforce.

The struggle to retain staff

The early years sector is also grappling with a staffing crisis. Low wages, coupled with the demanding nature of the work, have led to high turnover rates. A survey highlighted that almost 80% of early years providers struggled to recruit staff, with many leaving due to low pay and feeling undervalued. 

Dr Aaron Bradbury, an early childhood education expert, has expressed concerns about the feasibility of current childcare expansion plans, noting that significant adjustments are needed in schools to create suitable environments for very young children. 

A call for sustainable solutions

The current trajectory is unsustainable. Without adequate funding and support, more nurseries will close, childcare costs will continue to rise, and families will be left with limited options. It’s imperative that the government reassesses its approach to early years education, ensuring that funding levels align with the actual costs of providing high-quality care.

As a nursery owner, I remain committed to supporting the children and families we serve. However, without systemic change, the future of accessible childcare in the UK remains uncertain.