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By Rachel Lawler

The rising cost of living and the impact of the pandemic have led to a “sharp drop” in the availability of childcare places and increased costs, according to .

The survey found that parents are paying 2.5% more for children under two, 2% more for children aged two and 3.5% more for children aged three- to four-years-old than they were in 2021.

Declining availability
Availability of childcare has also decreased, with only 57% of local authorities reporting that they have sufficient place available for children under two – down from 72% in 2021. Only 59% of local authorities say they have enough for parents who work full-time, down from 69% last year.

Parents of children with SEND particularly struggle, with just 21% of local authorities have enough childcare, down from 25% in 2021.

Declining access to funded hours
The number of children access the 15 and 30 hours offers has also decreased, with 38% of local authorities reporting a decrease in the number of children using the two-year-old offer.

40% of local authorities have also seen a decrease in the uptake of the three- and four-year-old offer.

Financial difficulties
14% of local authorities reported that “at least a quarter” of their group-based providers are facing “severe” financial difficulties. Nearly two-thirds of local authorities (57%) have seen providers raise their prices and 30% have increased the number of children looked after by each staff member.

Call for reform
In response, Coram Family Childcare has called on the government to double the early years pupil premium, extend eligibility for the 30 hours offer to parents in education or training, reform Universal Credit, reallocate the Tax-Free Childcare underspend and make the 30 hours offer available to all three- and four-year-olds.

Underfunded sector
Neil Leitch, CEO of the ��������, commented: "What will it take for the government to admit that the childcare and early education system in this country is broken? We now have a situation where costs for parents are rising, the availability of places is falling sharply and we are losing qualified professionals from the sector at an alarming rate – and yet, ministers continue to insist that all is fine. 

"The fact is that the government has knowingly underfunded the early years sector – and specifically, the so-called ‘free childcare’ schemes – for years now, and the findings of the latest Coram childcare survey are a direct consequence of these policy decisions. With funding levels increasing at nowhere near the rate of delivery costs, is it any wonder that so many nurseries, pre-schools and childminders have had no choice but to increase fees and charges and, in some cases, restrict funded places? 

"We know that many young children are still dealing with the effects of the pandemic on their early learning and development and so it has never been more important to ensure that all children – and particularly those from disadvantaged backgrounds – are given access to quality care and education. 

"The government needs to stop sticking its head in the sand and start investing in our vital sector, before the damage done becomes irreversible."

Cost of living crisis
Ellen Broomé, managing director of Coram Family and Childcare, said: “We are disappointed that amid an ongoing cost of living crisis, and off the back of a pandemic which has severely impacted children’s life chances, the Government has again refused to review childcare funding and availability. Many parents, up and down the country, will be locked out of work or struggle to make ends meet as childcare prices continue to go up and the availability of places goes down. And the more vulnerable children will miss out the most on this boost to their development and outcomes.

High quality childcare is key social infrastructure, it helps parents work and narrows the gap between poorer children and their more affluent peers. With families’ bills skyrocketing, as Chancellor stands up to present his Budget, we urge him to make sure that childcare and children’s life chances are at the very heart of his announcements.” 

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