survey

ver 1,500 different responses were collected from all across the childcare industry, including childminders, nannies, nurseries and other sessional providers, and

included both business owners and staff. Each respondent was asked a series of questions about their childcare business and the childcare industry as a whole. They were also asked about their intentions regarding various government policies, particularly 30 Free Hours.

The detailed results are published in a report accessible via Morton Michel’s website, but this exclusive article details some of its key findings.

Industry outlook

2016 was a turbulent year for the childcare industry. Legislation promising 30 Free Hours had been passed but details were scant. Morton Michel’s survey paints a picture of a sector that is polarised and uncertain, divided between those anticipating stagnation or shrinkage and those who anticipate growth. Similar divisions appear in overall perceptions of childcare’s future, albeit optimists outnumber pessimists overall amongst respondents.

Interestingly, a more optimistic attitude prevails at an individual level and respondents were less likely to predict that their business would shrink than the industry as a whole, suggesting that they see themselves as resilient or ahead of the game. The sector is still polarised however, with playgroups and other sessional providers looking the most optimistic. Childminders and pre-schools seem less confident than nurseries and nannies, and all groups frequently cite rising costs as serious concerns.

Morton MichelAnnual Survey

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Morton Michel’s annual survey was conducted between 1st August and 2nd October 2016.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Grand Total

Pre-school

Playgroup

Other sessional provider

Nursery

Nanny

Childminder

Very positive

Very negative

How do you currently feel about the future of the childcare industry in the UK as a whole?

I am very concerned about the future of small PVI settings. It is going to become a struggle to remain sustainable with the increase in national living wage and the lack of a reasonable increase in funding rates.Preschool owner

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The results taken together show that childcare providers have grown used to making do and innovating ways to keep afloat in precarious situations. They are realistic about the instability of their position, but on the whole, are confident they have what it takes to meet the challenges ahead.

Motivations

With concerns about recruitment and retention frequently raised by industry voices, Morton Michel’s survey asked childcare providers to rank what was most important to keeping them working in the childcare sector. Job satisfaction overwhelmingly placed at number one and professional respect, came in second place, suggesting they may be the key to retention. Career development and access to support, which formed the basis of the government’s workforce strategy however, came much lower.

1st – Job Satisfaction2nd – Professional Respect3rd – Job Flexibility4th – Remuneration5th – Access to professioanl support6th – Career development

Although broadly the sector’s priorities were consistent across different types of provider, there were some differences. Unsurprisingly, those working in nurseries tended to list job flexibility as less important than other providers, while childminders and playgroup workers tended to place less importance on remuneration. Interestingly, pre-schools tended to rank respect as a professional highly compared with others, perhaps reflecting the impact of their proximity to the school system.

It may be a matter of concern that access to training did not rank higher. Although it might not be expected to outrank considerations like professional respect, in an increasingly professionalised and quality-driven workforce, its low ranking indicates more could be done to improve access and uptake. On a more positive note however, when asked about the quality of professional support received, it was more likely to be considered high quality than not. The support provider did make a difference with employers and private providers performing better than local authorities.

30 hours

The key question for the government right now is whether the childcare sector is going to be able to meet the expected demand for 30 Free Hours. Although Morton Michel’s survey was conducted last summer, before the funding formula was finalised, it offers a valuable insight into whether the capacity is there. Across the childcare sector, the survey demonstrates great uncertainty about whether 30 Hours will be offered. Amongst childminders, the survey shows the greatest opportunity for expansion of free hours. Just under half of the survey’s respondents currently offer free hours, while just under a third say they have no intention of offering 30 Free Hours. This suggests free provision could substantially increase. There is a warning too however; of those who have not ruled out offering 30 Free Hours, more than half are unsure, with just 28% of all childminder respondents definite about their intention to do so. If the policy were handled poorly then 30 Hours provision might not match current expectations.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Grand Total

Pre-school

Playgroup

Other sessional provider

Nursery

Nanny

Childminder

Very positive

Very negative

How do you currently feel about the future of your own childcare business or career?

As an owner manager, I have little support from LA, the support is good when I get it but that is very sparse. I sometimes do not earn a wage but ensure my staff are paid.Nursery owner/manager

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Amongst the sessional providers who responded to the survey, 57% currently offer free hours, but just 21% said they intend to offer 30 Hours. This was to be expected however, as some may not in fact run for 30 Hours per week and those who say they will be unable to offer 30 Hours account for 24% of respondents in total. Although 30% say they are unsure about offering 30 Hours, there may be less of a risk of under-performance in this sector than for nurseries.

The overall conclusion is a worrying one for the government. It is clear that if the policy is to have the capacity for success, there can be no mistakes!

Policy take-up

More than any other sector of the childcare industry, childminders have undergone significant changes in the last ten years. They are now expected to form a key part of the government’s childcare strategy, providing a high-quality service that meets parents’ requirements for flexibility. Its policies have been aimed at encouraging this.

Childminders currently offering 15 hours

Nurseries currentlyoffering 15 hours

Childminder intentions concerning 30 hours

Nursery intentions concerning 30 hours

48.65% intend to

offer

27.63% intend to

offer32.65% will not offer

39.72% undecided

41.89% undecided

5.41% currently do

not offer 9.46%will notoffer

0%

0%

100%

100%

94.59% currently

offer

30 hours provision an easy decision as it is not financially viable. The decision will do damage to my business.Nursery owner

Nurseries too demonstrate uncertainty, and this may be the greater danger in the long run. Nurseries account for far more places than childminders and nearly 95% of respondents to the survey currently offer free hours. When asked if they intend to offer 30 Hours, nearly 10% said they had no intention of doing so and 42% said they were unsure. This suggests a real risk that nurseries may not provide the capacity needed to make 30 Hours a success.

48.67% currently

offer

51.33% currently do

not offer

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Two of the most recent policies however, Childminder Agencies (CMAs) and Childminding on Non-Domestic Premises (CNDP) do not appear to have taken much hold amongst Morton Michel’s survey respondents. Less than 3% of respondents were registered with a CMA and only another 9% said they considered themselves likely to register with one. 40% were adamant they would never register and 30% said it was unlikely. With CNDP, a more recent policy, take-up is also slow. 2% operate from non-domestic premises and 6% intend to do so.

Both these statistics may change however. It is possible that 30 Free Hours and the government’s Workforce Strategy that emphasises links to schools will encourage new business models. Nonetheless, there is clearly much work to be done if the policies are to be a success.

NanniesHome childcarers are often the forgotten sector of the childcare industry. Without compulsory registration, there is little visibility on their businesses. Even Ofsted only started regularly reporting on those registered with them in 2017. Morton Michel’s survey however offers a unique insight into this sector.

Nannies: Number of children cared for

Nannies: Number of households worked in

1

2

3

4

5+

1

2

3

4

5+

4.26%

72.34%

31.91%

21.99%

36.88%

1.42%

16.31%

1.42%

10.64%

2.84%

Feel invisible lack of regulation and under cutting debases those who have worked in the industry, who are above board and are not out to make easy money. This kind of work is not easy and requires dedication.Nanny

According to the survey’s respondents, nannies predominantly work in one household, but 22% said they work in two, and 6% in 3 or more. They tend to work in households with more than one child, with just 4% looking after only children. 27% look after 4 or more children at once. Just 10% are the traditional ‘live in’ nannies, with the rest having their own home elsewhere.

Despite not being subject to compulsory registration, the nannies who responded to Morton Michel’s survey are frequently well qualified. 41% hold a level 3 childcare diploma, while nearly 10% hold a relevant degree-level qualification. However, almost 25% hold no qualifications at all.

The childcare sector is in the spotlight now like never before, and its contribution and importance to the country is widely acknowledged. It is now more important than ever that sector voices are heard and listened to.

No. of children No. of households