Sector sends joint letter in response to unfair CMA investigation

The National Day Nurseries Association (NDNA), the Professional Association for Childcare and Early Years (PACEY) and the Scottish Childminding Association (SCMA) have written a joint letter to the Competition and Markets Authority (CMA) for urgent clarification about their investigation into early education and childcare providers. Competitions and Markets Authority logo

The letter seeks to find out how the investigation will be conducted and that the early years organisations will be involved going forward. 

The CMA announced  last month an investigation into the childcare market as it was highlighted as one of the areas of concern in the way consumers have been treated during the Coronavirus pandemic. 

NDNA’s Chief Executive Purnima Tanuku OBE said: “Nurseries and childcare providers have been the fourth emergency service providing emergency childcare throughout this crisis. 

“It’s clear that they are crucial to the national infrastructure as they are being asked to be in the first wave of re-opening from the current lockdown conditions.

“However, the approach announced by the CMA puts childcare settings between a rock and a hard place. The funding rates they receive are not competitive market prices and members who have stayed open have told us they are operating at a loss.

“These members have fixed costs they need to meet regardless of if they are open or if they have had to close.

“The CMA needs to recognise that it will be damaging for the consumer, both parents and children, if high quality childcare places are lost in the long-term as a result of this crisis.”

Read the full letter here.
(Adobe PDF File)