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By Rachel Lawler

 

38% of childcare providers operating in deprived areas are making a loss, according to the latest annual report from independent researcher Ceeda.

 

The About Early Years report also revealed that childcare settings in affluent areas are also struggling, with 23% of these providers also making a loss.

 

Single-site settings are also struggling, with 55% of these providers currently making a profit, compared to 72% of settings with six or more settings.

 

The report also found that spend on the Early Years Pupil Premium is falling, with the overall spend down 40% since 2015/16.

 

For early years practitioners, average hourly pay remains low, with the average hourly rate of £8.74 per hour. This compares with average salaries of £8.91 per hour for cleaning and bar staff, £9.61 for sales staff and £11.86 for administrative and secretarial roles.

 

In more positive news, the report also found an increase in the number of Level 3 qualified staff following the reinstatement of functional skills as an alternative to GCSEs. Current rates are just 5% below the same period in 2012.