Back to School 2020: The make or break moment for childminding

10th September 2020

A report from the Institute for Fiscal Studies concludes that during lockdown, over half of childcare settings were at risk of running a significant deficit, with one out of four settings at risk of closure. In conjunction with this report,

Yoopies UK exposes the devastating reasons behind this deficit. During lockdown, childminders were the least likely childcare subcategory to be paid their full rate, over half were unable to access Government support, and 2⁄3 of those unable to work were unsupported by parent fees. The new school year proves more crucial than ever for the survival of the sector.

New childminders: the harshest hit by the pandemic Alarmingly, the IFS report highlighted that, even if all childminders received self-employment grants, the total loss of parent fees could see an additional 30% of childminders earning less than £4 of income for every £5 of costs. Their prediction sheds light on a much harsher reality, particularly for new childminders, as all childminding businesses less than a year old were ineligible for Government support in the first place. Of childminders surveyed by Yoopies back

in April, over half could not access Government support.

Having endured registration costs, set up fees, and a heart-wrenching wait from OFSTED to confirm their status, the pandemic put thousands of new childminding businesses at immediate

risk. Francesca Chong, Head of Yoopies comments "For an industry that does not have enough new childminders to replace those who leave, having already lost 37% of its childminders in 10 years , the pandemic will have done little but exacerbate this severe decrease."

The forgotten heroes of the pandemic

During the height of lockdown, its estimated fewer than 250,000 under-four year-olds attended an Early Years setting. However, for those who were able to work, around 54% , their efforts continue to be unrecognised. Many childminders displayed solidarity for key workers, going above and beyond their call of duty, putting themselves and their families at risk every day for little, if any, financial reward.

For one childminder, the hourly rate for looking after a key-worker child barely covered a bus ticket: "On some days my net earnings were less than £1.70 per hour. This included the early starts and late finishes that a nurse would work, however, we

remain the forgotten workforce."During lockdown, childminders were the least likely childcare subcategory to be paid their full rate, with a ¼ of those working earning a reduced salary.8 For

childminders unable to work during lockdown, two-thirds of families did not pay a partial retention fee to support their childminder,9 meaning childminders who were not registered for free-hours funding were left without any form of income whatsoever.

Despite their lower salary, childminders have always kept their fees low, providing an affordable and high-quality alternative childcare to nurseries and nannies. Even prior to Covid-19, most childminders (60 percent) did not charge parents any additional fees for food,

outings, or other activities.10 Childminders are now also forking out a fortune on safeguarding expenses, as one childminder told us "I'm spending my own money to ensure my setting is safe, including disinfectants, soap, masks, tissues, and sanitisers- something I've never budgeted so substantially for."

An Industry at Breaking Point: Should Employers or the Government do more? As the demand for childcare creeps back up, particularly for smaller settings such as childminders, the next few months are crucial to ensuring the recovery of the sector. Yet with

fears of a second wave, lockdown is a stark reminder that the fragile childcare sector needs targeted and long-term financial support.

A combination of financial stress, mistreatment, and low pay will have already pushed many out of the sector, as a survey by PACEY concluded back in March, "less than half (46%) say they plan to reopen within three months to a year." It is therefore unsurprising many parents are struggling to find the childcare they now so desperately need. We asked over 500 parents whether they find it "difficult, easy or manageable" to balance work and childcare.

Over ¾ of parents in full-time employment voted "difficult,"11 stressing the importance of a viable childcare sector. Francesca Chong, Head of Yoopies UK concludes "asking parents back to work without adequate access to childcare is a sharp wake up call for the Government to better protect childminders. The Government should encourage and aid employers to fund childcare, both helping parents back to work and guaranteeing the long-term safety of the sector."