Coronavirus: Nurseries facing struggle to survive under new COVID-19 rules

More than 70% of nurseries in England say they expect to operate at a loss in the next three months – with a warning the industry is on a “knife-edge” because of COVID-19.

New research, shared with Sky News, shows that although nurseries in England have reopened, on average just 35% of children have returned.

For some, the future is bleak, with 4% of nurseries saying that without help from the government they may have to close for good.

Official coronavirus guidelines now limit nursery groups to a maximum of 16 children – who must be kept in a social bubble.

Those rules, along with a fall in the number of children returning, mean many nurseries are now struggling to find their businesses viable.

The National Day Nurseries Association, which represents around 21,000 nurseries in the UK, surveyed its members in England over a four-day period.

It is now calling on the government to provide a transformation fund to help them adapt to the new ways of working.

Purnima Tanuku, the charity’s chief executive, said: “Normally nurseries would need 80% occupancy to be able to break even.

“At 35% occupancy levels, unless they can increase their fees and there is additional support, unfortunately many of them won’t survive.”

She added: “It is knife-edge time because those which were teetering on the line before COVID started – this is going to be the last straw for them.

“In terms of the additional pressures they are going to have to take up, not just maintaining the distance and looking after children, but financially they’re going to be really struggling and those are the ones that are going to close down.”

Tigers Nursery in Thatcham, Berkshire, reopened this week with 80 children attending – around half the normal number.

Operations manager Jane Tubb – who runs three nurseries in the group – said although they do not expect to have to close, the impact is significant.

“I do think some settings will really struggle to get through this. This term – the summer term – is where we make the funds to progress through the other two terms.

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“We’ve not been able to do that. This is a long-term issue. Lots of parents are saying we’re going to leave it a few weeks – lots of families feel very anxious about returning to normal.”

Larger nursery groups are also calling for more help.

Storal Learning runs 20 nurseries, including The Honey Tree Nursery in Bristol.

Its director, Ash Grover, said: “Typically across our group we’re now operating at about 40% of our regular occupancy. When margins are thin as it is, and you’re operating at 40% and your staffing levels are well above that, it’s difficult.”

Nurseries have been able to access some support to furlough staff, but many nurseries that have continued to provide care to the children of key workers throughout the pandemic – at a loss – say they have been left short.

The Department for Education did not respond to the charity’s request for extra funding, but Children and Families minister Vicky Ford told Sky News: “Early years professionals have made heroic efforts to support families at this difficult time and I am grateful for the way they have worked with us to make sure we support parents and keep children safe.

“It’s testament to the great impact nurseries, preschools and childminders have on children’s education and the reassurance they offer families that so many parents are confident in returning their child to childcare from 1 June.

“We have been working very closely with the sector as we begin the wider opening of settings, and have provided significant financial and business support to protect them during these unprecedented times.”

This week until Thursday, Dermot Murnaghan will be hosting After the Pandemic: Our New World – a series of special live programmes about what our world will be like once the pandemic is over.

We’ll be joined by some of the biggest names from the worlds of culture, politics, economics, science and technology. And you can take part too.

If you’d like to be in our virtual audience – from your own home – and put questions to the experts, email afterthepandemic@sky.uk

(c) Sky News 2020: Coronavirus: Nurseries facing struggle to survive under new COVID-19 rules