Nurseries cutting staffing and services to balance books

More than a third of maintained nursery schools are cutting staffing and services to balance their books as a result of lost income and additional Covid-19 costs, a survey has revealed.

The survey, carried out by Early Education, NAHT, NEU and UNISON, found that maintained nursery school leaders were losing an average of more than £70,000 of income while having to spend an extra £8,000 on additional Covid-related costs.

Unlike some other schools, maintained nurseries were not eligible for exceptional cost funding for Covid from the government and so have had to bear the brunt of these costs themselves.

They were also not eligible for some government schemes which benefited private providers in the sector such as the business rates holiday or business loans.

The survey has demonstrated the long-term future of many nursery schools is now seriously at risk. Almost half (46%) of respondents said that at the end of March 2021, they would be in deficit for the year.

The average deficit reported was £76,000. Worryingly, only 23% of respondents confirmed that they could continue to operate within their current funding levels and over one in five (21%) reported that they have financial recovery plans in place or under discussion.

Cath Earley, headteacher of Greenacre Community School in Sefton said: ‘During the last 12 months the sector’s priority as always was to support our children and families.

‘This was done with little thought to the cost and the impact on our budgets. We opened for essential workers, often admitting new children at short notice due to the closure of other early years providers who were able to take advantage of financial incentives which excluded Maintained Nursery Schools.

‘It’s disappointing but not surprising that the Government and ministers have failed to acknowledge yet again the important place we have in our local communities and the lives of our children and their families, especially the most vulnerable. This comes at a significant financial cost.’

As a result of ongoing pressure from parents and the sector, the government has now finally confirmed funding for the next two terms.

However, despite ongoing promises from the government to find a long-term funding solution, these schools still have no clear picture of what their funding will look like beyond next spring.

As things currently stand, they will be asked to allocate places without knowing what their budgets will be.

These latest findings suggest that the ongoing lack of certainty, coupled with the financial pressures of Covid, continues to put the long-term sustainability of this vital sector at severe risk.

Beatrice Merrick, chief executive of Early Education said: ‘Maintained nursery schools during the pandemic were a lifeline for local families; they stayed open for the most vulnerable children and children of critical workers, often taking in children from other settings which closed.

‘They supported their families with remote learning, and often with food parcels and practical support.

‘They were in touch with vulnerable families when health and social services were unable to maintain contact.  Instead of this lifeline being supported, it is being put at risk by government failure to address their routine funding needs.

‘Having been operating on a financial knife-edge for years, the pandemic has tipped the balance for too many schools, Government needs to act now to resolve the long-term funding issue and provide targeted financial help to those whose survival has been jeopardised by the pandemic.’

UNISON head of education Jon Richards said: ‘Getting secure, long-term funding in place to support maintained nursery schools for years, not months, must be a priority for the government.

‘By dragging their feet on making a proper commitment, ministers are putting staff, many of whom who worked throughout the lockdowns, in fear of losing their livelihoods.

‘And the families of children who’ve benefited from the specialist support of nursery staff may have to look elsewhere for the help they need. For those preparing to attend in September, the picture will look bleak if nurseries are forced to close.’

A Department for Education spokesperson said it has confirmed funding for the full financial year 2021-22 and that the next Spending Review will consider all aspects of future government spending, including for 2022-23.

‘We are providing local authorities with around £60m in supplementary funding this year for their maintained nursery schools, and have confirmed the rates they will receive up to March 2022 to give them clarity around their budgets as early as possible.

‘This supplementary funding was introduced as a temporary solution while a longer-term solution to funding maintained nursery schools is considered. Ministers have been clear that our commitment to doing this remains unchanged, and any change will follow a public consultation.’

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