3 days Ago
The director of a Sussex children's nursery chain has sounded the alarm on what could be a looming crisis in the early years sector. According to Philip Ford of Hopscotch, independent providers, like his, are facing several new challenges. One of the most pressing challenges the nurseries are facing surrounds funding limitations and the impact this has on the way that nurseries operate.
Philip believes this will create a divide among children in nursery care. Philip Ford (Image: Alex Rumford) He explained that this would make it more difficult for the nursery to make decisions that incur additional costs to parents, such as organising extra activities. Philip said: "This could result in some children being excluded from experiences because their families might have less money - for example going on a school trip.
"This understandably puts us in a difficult position." (Image: Alex Rumford) In terms of funding, Philip believes government reassessment is needed for nurseries like his to be able to provide the best possible care. He adds: "The sector does sound like on a broken record on this, but funding rates do need to be assessed and fairly considered - against what the going rate for what it costs the nursery to provide good childcare.
" Philip's concerns also extend beyond just the in-house care of the children. He says the financial pressures caused by these restrictions are putting strain on the nurseries themselves. As a result of increased operational costs and shrinking budgets, smaller nurseries may soon find themselves unable to compete.
Within the ethos of Hopscotch is fair pay; the business pays their apprentices nearly double the national minimum wage for apprentices. In October's budget, chancellor Rachel Reeves announced employers' contributions to National Insurance would rise in April from 13.8 per cent to 15 per cent on earnings above £175.
The threshold at which employers start paying the tax on worker salaries will be reduced from £9,100 per year to £5,000. The Employers Allowance, which businesses can claim back, is increasing from £5,000 to £10,500. On National Insurance contributions, Philip said: "We have forecast that the changes will be set to cost us about an extra £140,000 a year which works out around £20,000 at each site.
Hopscotch has been in business since 1988. (Image: Alex Rumford) "We are disproportionately affected as we have more flexible and part-time workers which means we have a higher number of staff going over the threshold which was reduced. "Again this is another big challenge for us to navigate.
Philip worries that similar nurseries, which form the backbone of local communities, could face closure or acquisition by larger corporate groups that are better equipped to absorb these costs. Hopscotch Nurseries was founded in 1988 by Philip's mother Barbara, who was a teacher at Varndean College. Through navigating her own experience of being a working single mother, Barbara decided to open her own childcare centre.
The first nursery was set up on Ditchling Road with a small space for 12 children. Since opening 47 years ago, Hopscotch has cared for more than 7,000 children and established nurseries throughout Sussex, including in Preston Park, three in Hove, and others in Seaford, Peacehaven and Worthing. Credit : Alex Rumford (Image: Alex Rumford) Philip joined the business after his mother, Barbara retired and wanted to keep the same ethos - children before profits but fears nurseries like his are having to keep up with competition from bigger players.
He states that while his nurseries have successfully overcome major challenges such as the pandemic, the cost of living crisis, and rising utility costs, the new obstacles are proving to be particularly challenging. In response, to the concerns raised by Philip, a Department for Education Spokesperson said: "Giving every child the best start in life is central to our mission to break the unfair link between background and success, and through our Plan for Change, we’ll get thousands more children school-ready by aged 5. "That’ is why despite having to take tough decisions to fix the foundations of the economy, we are raising spending on the early years entitlements to over £8 billion next year and we have announced the largest ever uplift to the early years pupil premium, increasing the rate by over 45% compared to 2024-25.
"On top of this, we have recently announced details of a targeted £75 million grant to support the increase to 30 government funded hours from September, alongside our strengthened guidance to make sure that parents do not face unfair charges to access a place.".
