Childcare providers make losses says report

The Childcare Provider Finances Survey for the Department of Education has found that almost a quarter of childcare providers in England are suffering losses, despite charging some of the highest fees in the world.

Childcare providers make losses says report

by Louise-Anne Geddes, Mindful Mum, 3rd June 2012

The report suggests that 11% of providers are just breaking even, and that almost 60% have frozen their fees due to the recession.  More than 1,200 child minders and nursery managers were interviewed across a broad range of private and voluntary providers, in order to gain a ‘representative sample’.

Costs for child minders

The survey found that the single largest cost for child minders was for materials used, which included books, toys, art materials and meals.  This accounted for 53%.  Decorating and repairs to home and furnishings accounted for 11% and insurance represented 8%.  The main ‘other’ costs included transport and membership/registration fees of professional bodies.


The findings from the research showed that some major worries included parents being unable to afford fees, a concern for 21% of child minders, and not being able to fill enough places (22%).  Nurseries and larger care providers cited concerns including staffing costs, demand for places and parents affording the fees.


The report concluded that ‘there is evidence to suggest that the affordability of childcare is a significant concern for parents.  This report is intended to shed light on what is driving the costs of childcare and to suggest areas where further exploration would be beneficial’.  The full text of the report can be found at the link below.

Source:  Department of Education, Childcare Provider Finances Survey, May 2012


Photo: DIAC Images @ Flickr

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