The Recruitment Crisis:
The disappearing work force
Expenses keep climbing — But the Funding Hasn’t Budged. Families and Nurseries Are Left to Cover the Gap.
Since 1999, early years settings have been expected to deliver more, more hours, more regulation, more impact.
But while government funding has increased slightly, it hasn’t kept the pace with the real-world costs of delivering high-quality childcare.
Whats changed since 1991?
Entitlements Expanded:
- 2010: all 3&4 year olds entitled to 15 hours free a week
- 2017: increased to 30 free hours per week
Expectations rose: EYFS requirements, ratios, staff qualifications
Costs exploded: Especially staff wages, the largest operational expense
Minimum Wage Has Sky Rocketed
This is a 235% increase in the national minimum wage
But Funding has barely moved
this is only an 83.5% increase – just over a third of the cost providers have faced.
Funding hasn’t risen in line with wages.
Our largest cost – staffing – has increased almost 3 times more than the funding we receive to cover it.
If minimum wages go up 235% then funding needs to go up by a similar percentage.
Anything less means settings are expected to absorb the loss
and many simply can’t
The Bottom Line
If costs ↑ 235% → turnover must ↑ 235%
Otherwise Unsustainable
Turnover (£5.35/ph) – Expenses (£12.21/hr) = Χ
It Doesn’t Add UP
What Can Parents Do?
✓ Ask your local authority how they’ve spent early years funding
✓ Support your local nursery or childminder by sharing the issue
✓ Contact your local MP and demand transparency and better use of public funds