Recommendation 16

Despite childcare settings being allowed to remain open since summer 2020, levels of activity remain below pre-pandemic levels. We welcome the steps taken by the Government to support the sector financially during covid-19, but this has not prevented many providers seeing a significant impact on their finances. With ongoing uncertainty about future demand for their services, there is a real risk the pandemic will contribute to an ongoing erosion of provision or even act as a tipping point and accelerate this trend. Long-term, targeted support from the Government will be required to avoid this outcome, which would have serious consequences for children’s early education and parents’ workforce participation.