Leading organisations from across the early years and education sectors have written an open letter to the education secretary, warning of the impact of underfunding on the early years sector.
The letter, which has been signed by the Early Years Alliance, reads:
Dear Secretary of State,
Re: Government’s childcare pledge at risk of collapse
We are a group of national organisations representing children, parents, early years providers, the early years workforce, and the wider business community.
We welcome the government’s plan to expand funded childcare hours. It reflects our shared ambition to support families, strengthen the economy, and give every child the best start in life. But right now, that promise is at risk of collapse.
For too long, the funding for the 30-hour offer hasn’t covered the real cost of delivery. Nurseries, childminders and other providers have been plugging the gap, but they now face unprecedented pressures: rising National Insurance contributions, higher wage bills, and escalating running costs now threaten the viability of a system that parents, children and the economy depend on.
The consequences? Parents are already facing higher fees. Nurseries are freezing recruitment. Business expansion plans are being scrapped. In our recent survey of more than 800 providers, 44% told us they couldn’t meet the demand this September. One in six have already cut funded places, and another 20% are about to follow. One in ten say they are likely to shut their doors for good within two years. These shocking figures will result in families being let down and children falling behind.
At the heart of this crisis is the workforce. Dedicated staff are leaving because pay and progression lag far behind other sectors. Without urgent investment, early years settings won’t be able to recruit or retain the people they need. And without them, the government risks missing its own target of three-quarters of children achieving a good level of development by 2028.
We are therefore calling on the Department for Education to act now and provide proper funding to:
- Cover rising National Insurance costs so nurseries and childminders aren’t forced to raise fees for parents or turn children away.
- Increase pay and training so staff are valued, stay in the sector, and the quality of early years provision is protected.
- Support sustainable expansion of the sector so there are enough affordable, inclusive, high-quality places to meet demand from families, no matter where they live.
Early education and childcare isn’t a “nice to have”. It’s essential for working families, vital for the economy, and life-changing for children. Without immediate investment, this policy risks being an expansion in name only, with the reality being a system that is short on staff, short on places, and short on expertise.
The government promised parents affordable childcare and children a fair start in life. Without greater support for the sector and its workforce, you risk breaking that promise.
Yours sincerely,
Sarah Ronan, Director, Early Education and Childcare Coalition
Neil Leitch OBE, CEO, Early Years Alliance
Nick Harrison, CEO, Sutton Trust
Rachel Grocott, CEO, Pregnant Then Screwed
Sir David Holmes CBE, CEO, Family Action
Daniel Kebede, General Secretary, National Education Union
Purnima Tanuku CBE, Executive Chair, National Day Nurseries Association
Meghan Meek-O’Connor, Head of Policy, Research and Influencing, Save the Children
Jane Harris, CEO, Speech and Language UK
Beatrice Merrick, CEO, Early Education
Jane van Zyl, CEO, Working Families
Annie Crombie, Co-CEO, BookTrust
Shauna Leven, CEO, Twins Trust
Helen Donohoe, Head of Coram PACEY
Helen Osgood, National Secretary (Education and EarlyYears), Community Trade Union
Dr June O’Sullivan OBE, CEO, London Early Years Foundation (LEYF)
Penny East, CEO, Fawcett Society
Denise Hatton, CEO, YMCA England & Wales
Catherine Mole, CEO, Dingley’s Promise
Abby Jitendra, Principal Policy Advisor, Joseph Rowntree Foundation
Dr Mary-Ann Stephenson, Director, Women’s Budget Group
Prof. Chris Pascal, Founder and Director, Centre for Research in Early Childhood (CREC)
Allie Bell, Chair, National Nanny Association
Kathy Jones, CEO, Fatherhood Institute
Katie Ghose, CEO, Kids
Tina Maltman, CEO, Childminding UK
Claire Reindorp, CEO, Young Women’s Trust