Alliance welcomes furlough scheme extension but urges more financial support for childcare providers

Commenting on the news that the Coronavirus Job Retention Scheme is to be extended to October, with greater flexibility introduced as of August, Neil Leitch, chief executive of the Early Years Alliance, said:

"While we welcome the extension of the Job Retention Scheme and the news that employers will be able to bring employees back part-time as of August, we remain incredibly concerned about the financial viability of the childcare sector, particularly over the next few months as providers look to potentially reopen.

"With the initial demand for childcare places expected to be significantly reduced, and still no clarity from the government on whether existing support schemes for the sector will continue during this time, the outlook for many nurseries, pre-schools and childminders across England is very uncertain.

"The government's refusal to reverse its decision to limit how much support childcare providers can access via the Job Retention Scheme has already had a hugely damaging impact on the sector. It is absolutely vital, therefore, that the government confirms exactly what funding will be made available to providers to ensure they are able to stay afloat during this transitional period.

"There are many significant financial challenges facing the childcare sector at the moment and the extension of the furlough scheme - while helpful - is, by itself, not the solution."