Childcare providers warn that the sector could collapse due to financial crisis

Earlier this month, First Minister Arlene Foster warned that millions of pounds earmarked to help the struggling sector are not being released quickly enough.

Health Minister Robin Swann announced at the beginning of May that £12m in support for the childcare sector had been made available, while Finance Minister Conor Murphy announced £10.5m in support last month.

But a number of daycare providers have now told the News Letter the severe financial implications of lockdown, when many providers were forced to go without any income for three months, means many could soon go under.

Roger D’Arcy, who runs the chain of seven ‘Rascals’ day nurseries across Belfast and Londonderry, said: “It’s dire, that’s the honest answer. We were told by government that we had to close, with the promise from government that if we closed that our fixed costs would be covered.

“We are not looking to get profit out of this, we are just looking to get our fixed costs covered so that we can get back to serving our communities.”

Mr D’Arcy said many providers could “decide to remain closed” unless the situation improves.

He said an “uncomplicated grant scheme to support parents getting back into employment” or “even a concrete skeleton of a scheme that we can take to the bank with guaranteed payments in the autumn” should be set up to help daycare providers survive.

He added: “We want and need to get back to serving our communities, parents, staff and children.”

Mr D’Arcy also warned against the “real emergence of the black economy” with “unregistered, unregulated” providers.

“That was the situation 30 years ago and we’ve come a long way since then,” he said. “We don’t want to go back to black market daycare but that’s the way we’re headed. But we’re going to pull ourselves back 30 years if we don’t do something about it.”

Linda Courtney, who runs the Kids and Bibs daycare in Moygashel, Co Tyrone, met Arlene Foster in June and stressed to the First Minister the precarious situation facing many providers due to lockdown.

Speaking to the News Letter about the current situation, she said: “I think it is likely that many will close, yes,” she told the News Letter. “I started up around six years ago and to me this is like starting all over again.

“We have had three months with no income. In terms of cashflow that’s a real problem. We just take one day at a time.”

Roger D’Arcy said it is important that government “tell us what we’re getting” in terms of financial assistance as soon as possible.

He added: “We need to know quickly.”

He also warned that if many daycare providers do go under, and working parents find it more and more difficult to find childcare, the economy will suffer.

“Parts of the sector are facing collapse. If people can’t get childcare, they can’t go to work.”

Linda Courtney said it is more likely women will choose not to go back to work.

“We are seeing that already,” she said.

“Many women have felt they have missed out due to lockdown on that time on maternity (leave) and they are deciding to extend that by three and four months, unpaid.

“If people can’t find childcare we are probably going to see more and more of that.”

Last month it was announced that childcare could be provided to all families. Previously, only children of key workers were able to access childcare facilities.

The News Letter also heard from the owner of a daycare facility in Belfast, who asked not to be named “so as not to worry the parents”, who admitted they may be forced to close after around three decades in business.

“I don’t think people realise how serious this is,” the daycare owner said.

The Department of Finance has been invited to comment.