NEARLY 20,000 childcare providers could close completely within six months because of proposed changes to funding from the government, new Labour Party analysis shows.

Since March, the impact of the Covid-19 pandemic has led to a sharp drop in the number of families putting their children in the care of nurseries, childminders and pre-schools.

The government plans to change funding for childcare providers to match the current low levels of attendance from this month.

The changes mean a quarter of providers fear that they will have to halt their services within six months, according to a survey by the Early Years Alliance.

Providers were asked: “If the government goes ahead with plans to base early entitlement funding on actual attendance as of January 2021, rather than basing it on pre-Covid attendance levels, how long do you anticipate being able to remain viable?”

Fifty six per cent of them said the changes would have a negative or very negative impact and, of those, 45 per cent said they do not think they would be able to remain viable for more than six months.

Labour analysis shows this could result in around 19,000 childcare providers being forced to close by summer, with more than 30,000 at risk of closure by next Christmas.

Mass closures would lead to many parents being unable to access childcare and would make it harder for many parents to return to work.

Shadow minister for children and early years Tulip Siddiq said: “The government has repeatedly failed to give the early years sector the support that it needs throughout this pandemic, and now many thousands are facing a cliff-edge.

“The government’s plans to change funding in the midst of a pandemic and while childcare attendance is down could put thousands of providers and jobs at risk. 

“They must urgently rethink these plans.”