The increased childcare support that parents will receive as part of the budget is “too little, too late”, according to Hackney nurseries.
This year’s budget, which was announced by Chancellor Jeremy Hunt on 15 March, includes a proposed £4bn expansion of free childcare to parents of one and two-year-olds.
Mehtab Yilmaz, who is the manager of Happy Nest Day Nursery in Hoxton, said: “Unless there’s a drastic change, and this budget isn’t a drastic change, it is too late.”
“In Hackney alone, I know so many outstanding nurseries that have lost their status because of the lack of staff as it is. Even if there’s any further changes in terms of funding and everything, there are already so many nurseries which are planning to close,” she said. “To be honest, we’re struggling.”
According to the new budget, those who are on universal credit will now be given childcare funding upfront rather than having to apply for reimbursements. The amount of support that can be claimed will also increase by several hundreds of pounds per month.
The budget provisions address the mounting pressure on to combat the spiralling cost of childcare. The cap on financial aid that families can claim as part of their universal credit has remained the same since 2005 – even though childcare costs in London have more than doubled since then.
According to a survey of 24,000 parents by campaign group Pregnant Then Screwed, 76 per cent of mothers who pay for childcare now feel that it doesn’t make sense to do so.
Maame Appiah, manager of Clapton nursery the Ark Day Care, said on the budget’s changes: “I don’t think it’s enough.”
“To be honest it’s not the best but what can we do?” she continued. “The government doesn’t listen to nurseries.”
The chancellor’s budget will increase the amount paid to childcare providers to cover the 30 free hours that many families are entitled to.
However, with the rising cost of delivering childcare, they are keen to find out exactly how much this increase will amount to.
At Little Gems Nursery in Stamford Hill, 95 per cent of children receive additional funding.
Manager Sadiqah Maljee said: “There is a shortfall in the delivery cost of what the government put down as ‘free’ entitlement.
“It’s all fine and well that the government says X billion pounds are going to be invested in childcare but what is actually coming to individual providers?” she asked.
“With living costs and bills going up, if the current funding for the free entitlement remains the same, I think it’s going to be impossible to manage,” she said. “How are we going to be able to survive paying the high rates of delivery and provide those hours that the government have said parents will need for free?”
Maljee explained that research shows that children can benefit both academically and developmentally from good and outstanding settings. “The early years are so important and I think the government should fund that properly.”
