Day Care and Pre-school Education: Private Sector

Department for Education written question – answered on 5th September 2022.

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Photo of Bridget Phillipson Bridget Phillipson Shadow Secretary of State for Education

To ask the Secretary of State for Education, what assessment he has made of trends in the levels of (a) profit and (b) changes in the levels of profit made by private providers and operators of childcare and early years provision in England in the last (i) five and (ii) ten years; and if he will make a statement.

Photo of Brendan Clarke-Smith Brendan Clarke-Smith The Parliamentary Under-Secretary of State for Education

Under current legislation, private, voluntary and independent group-based providers are not required to share financial information with the department. Therefore, the precise information requested is not available.

The department's Survey of Childcare and Early Years Providers indicates income-to-cost ratios. A broader measure capturing the ‘breakeven’ range indicates that around half (51%) of all providers had roughly equal total income and total cost, while 26% had a deficit and 24% had a surplus. The patterns in 2021 were broadly similar to those in 2018 and 2019. This information is available here:

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