CCN Analysis: Managing Post-Covid Childcare Markets

Our analysis outlines how Covid‑19 has exposed and intensified structural fragilities in childcare markets, with the network warning that disruption now may hinder both children’s outcomes and wider economic recovery.

County authorities report that while most expect to meet their childcare sufficiency duty in 2021/22, this is partly because demand is falling rather than supply stabilising. The report highlights particular risks in rural and coastal areas, where the closure of even one provider can significantly reduce access.

According to a survey of County Councils Network members, almost all county councils and unitary councils have been approached for financial support, and all expect some provider closures, driven by lost parental fee income, workforce vulnerabilities, and uncertainty about future working patterns.

Childminders, sessional pre‑schools and small voluntary providers are judged most at risk. Local authorities have acted quickly—using emergency funding, advice, PPE provision, training and market‑brokerage—but these measures cannot be maintained indefinitely.

We conclude that without continued national support, market contraction may undermine economic recovery and limit childcare availability for families returning to work.

Key findings from a survey carried out for the report found that:

• 72% of councils remain “quite confident” in meeting sufficiency; 24% say it is 50/50.  
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• 96% have received requests for financial help from providers.
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• All expect closures; 80% foresee up to 10% provider loss, 20% up to 25%.
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• Childminders (80%) and sessional pre‑schools (75%+) most at risk.

Recommendations to government include:

• Recognise local authority childcare duties in future funding settlements.
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• Create an emergency grant scheme for strategically essential providers.  
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• Review and uplift free‑entitlement funding within the Early Years Block of the DSG.