The importance of the childcare sector cannot be underestimated. Across the sector, individuals and organisations provide early years education and development. Not only is this a direct investment in our children's future, but also a key factor in allowing parents to work - benefitting families, businesses and the wider ecenomy as a whole.
We undertook research in this sector, publishing the results in our report "Handle with Care: The challenges facing small business childcare providers". Our research shows that many of our members running nurseries, pre-schools and childminding businesses are feeling the pressure as a result of the rising costs of doing business combined with significant recent changes in Government policy. In particular, the introduction of 30 hours' free childcare for an estimated 390,000 eligible families in England.
What are the problems?
Across the UK, our members in the childcare sector have laid out the problems, including the spiraling cost of being in business, challenges in training staff and difficulties navigating complicated systems and legislation.
Our work across the UK
In Wales, the childcare sector has been part of a much broader discussion under the banner of the ‘Foundational Economy’. At its simplest, the foundational economy is those sectors that aren’t typically included in conversations around economic development but that are crucial to day-to-day life. For instance, childcare, social care, housing and food are all sectors that are made up of many diverse SMEs but that often are ignored by policy makers.
FSB Wales has been leading the charge on these sectors. Firstly, we commissioned a report from the Centre for Research on Socio-Cultural Change (CRESC) at the University of Manchester called What Wales Could Be? This report highlighted the vital role SMEs play in the ‘foundational’ sectors such as childcare and called for their inclusion in broader economic development policy. This formed a core part of our campaign at the 2016 National Assembly election and subsequently the foundational economy has been adopted as a key pillar in Welsh Government’s economic strategy; the Economic Action Plan.
In relation to the childcare sector specifically, FSB Wales has successfully campaigned for an extension of business rate relief to the sector in order to make a success of Welsh Government’s new childcare offer of 30 free hours per week for 48 weeks of the year for 3 and 4 year olds. This amounted to relief worth in total £7.5m over a three year period and those premises involved will receive 100% rate relief.
Throughout the country, nurseries and childminders provide an essential service to local communities and economies – and many are operated by dedicated small business owners.
But running a nursery isn’t easy. The public sector provides stiff competition and overheads can be high in what is, rightly, a tightly regulated sector. That is why FSB provides essential, practical help for busy businesses in the sector – whether it’s our expert employment advice line, or our policy campaigns team in Scotland securing a three-year business rates relief package. Over the next year FSB will be campaigning to ensure that day nurseries continue to benefit from the relief which provides day nurseries with a 100% discount on their rates bill.
Northern Ireland remains the only area of the UK where provision of Childcare is not underpinned by a corresponding strategy. The proportionate amount of the investment in Northern Ireland is around half that of other UK nations, leading to increased costs for parents and childcare providers that have struggled to remain in operation. Official statistics show the number of providers decreasing overall by around 30% since 2013.
After three years of no Government, the Northern Ireland Assembly returned in January 2020. The Ministerial Executive is underpinned by ‘New Decade New Approach' - a political agreement with commitments across major areas of public spend. With cross-party support, it has been agreed that a Childcare Strategy will be published, but with no time frame attached.
Since 2018, FSB NI has engaged extensively with members who provide childcare services, small businesses and decision makers across the UK.
The landscape is complex, regulations are more stringent than elsewhere and responsibility for ‘Childcare’ falls across multiple government departments. Our focus is on ensuring that childcare providers have a voice and remain sustainable, while also helping parents (primarily women) enter or re-enter the workplace, or to start a business if they choose.
Our short-term asks are:
- The Department of Education should publish a road map for the transition to a new childcare system
- Departments should engage often with providers to understand and solve ‘live issues’, while consulting properly to ensure a new strategy is fit
- for purpose
- Childcare providers should have 100% rates relief like their counterparts in Scotland and Wales, at least until a new childcare strategy is in place
- The All Party Working Group on Early Education and Childcare should be granted ‘official status’ now that the NI Assembly is functioning again
Blogs and Advice
Insuring Your Business
Our experts at FSB Insurance Services go through the insurance basics for your business.
Managing your business
Our guide will help you make sure you know your ABC from your 123
Risk assessment basics
Just getting started? Our guide to risk assessment will take youu through the basics of how, when and why.
How FSB membership can help
With a range of benefits covering legal issues, employment matters and health and safety regulation we can lend a helping hand behind the scenes.
Managing your employees
Our legal hub contains on demand templates including employment contracts, business policy documents, employee performance forms and more, all ready to download and customise at a time convenient to you. Got a question about managing your staff? Our employment law advice service is here to make your life easier with important information and guidance on employment legislation in the UK as well as support in the event you are taken to a tribunal.
Managing your Health and Safety
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Online training hub
Browse our online catalogue of Health and Safety training courses covering the basics you need to keep your staff and charges safe in your establishment. Got a specific question? Our helpline has the answer and our online hub has the record sheets you need to keep things shipshape.
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Navigating the rules and regulations relating to being in business can be complex and time consuming. Our legal helpline is open 24 hours a day to answer your queries and our online hub has up to date downloadable guides for you to download and keep.
Caring for yourself as well as others
It can be easy to neglect yourself when your days are spent caring for others. If the worst should happen and you become unwell with a serious physical or mental health condition, we offer free access to a personal nurse adviser, an experienced Registered Mental or General Nurse to help support you.