The situation for some childcare providers in Cheshire may be much tougher, after the Spring budget announcement yesterday.

The government announced yesterday (March 16) a package of changes to the childcare industry aimed at improving the situation for parents and encouraging some to go back to work. However, the changes have left some nurseries in the county worried about how they are to going to pay for the changes.

The government announced in its budget yesterday that 30 hours of free childcare per week will be extended to children aged nine months or above. The scheme was originally available for three to four-year-olds only. The government have also announced that the hourly rate paid to childcare providers for free care will increase also but did not specify by how much.

However, the changes have left some nurseries in the county worried about how they are to going to pay for the changes.

For Cheshire nurseries, the extension to free childcare will mean many will have to juggle priorities and costs in what is already a very delicate balancing act.

Cat Hirst, who is the chair of the National Day Nursery Association (NDNA) Chester and Cheshire West said: "It has been a very difficult time for all nurseries across the region. We help many and whilst help is appreciated, we absolutely worry about the future for some settings."

The government has yet to reveal fully the level of support it'll provide nurseries, other than to announce that the hourly rate of its subsidies to childcare providers will go up, however for many nurseries, the cost of providing free hours each week runs at a loss.

The most recent stats showed that a nursery which offers 15 hours of free childcare, loses on average £34,000 annually. This doubles for nurseries which offer 30 hours of free childcare.

Cat continued: "As a nursery setting ourselves, we lose a lot through free childcare provision. We don't have many 15 hours in the nursery, so we lose a huge amount.

"We cannot expect others to plug that gap and certainly can't expect so if we extend free childcare out to 1-2-year-olds.

"All we can do is hope that the government see that this is completely unsustainable."

501 childcare providers shut across the North West in 2022 (Image - Unsplash)

Joanne Carraghar, who runs Jo Jo's Nursery in Crewe wasn't surprised that the scheme had been extended but was also worried about how it would work for nurseries like hers.

She said: "The aim I guess would be to help parents and carers, and I totally appreciate that but it's a cost we can't really afford on top of everything else."

And the cost of everything else has also gone up. Inflation and soaring energy bills have meant many North West nurseries have hit breaking point over the last few years.

In the most recent survey by Ofsted, the North West lost nearly 4,000 early years places, the most throughout the country as many battled to keep open. In fact, 7.4% of nurseries which were open in 2021, had closed in 2022 throughout the North West, which equated to 501 in total.

Joanne said that other costs which many do not see, have taken its toll on the business.

She said: "The cost of amenities, things we need to keep the place running and provide the best care we can continues to go up or at least not go down. And that is a big problem, something we are going to have to figure out."

But she did remain hopeful, that as a company they will figure it out.

"I think we're in a much better position than some. Our business is stable, and we will offer the hours I'm sure and we'll figure it out in terms of how to make it work. We have the time until it is brought in in order to do that.

"I just feel as providers, we've not really been considered at all."

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