By Nurseries face struggle to survive under new Covid-19 rules
Nurseries nationwide are reporting that they are facing a struggle to survive under the new Covid-19 rules.
Although many nurseries have now reopened, new research issued by the National Day Nurseries Association, suggests just 35% of children have returned.
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.”
“It is knife-edge time because those which were teetering on the line before the coronavirus pandemic 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.”
Over 70% of nurseries in England say that they expect to operate at a loss in the next three months.
Many are warning that the industry is on a the edge because of coronavirus.
4% of nurseries have stated that without financial intervention from the government they may have to close for good.
Official guidelines now limit nursery groups to a maximum of 16 children.
This, along with a fall in the number of children returning, mean that many nurseries are now struggling to find their businesses viable.
The National Day Nurseries Association is now calling on the government to provide a transformation fund to help them adapt to the new ways of working.
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 National Day Nurseries Association did apply for extra funding, but the Department of Education did not respond.
