Childcare as a commercial business has recently seen a significant growth with privately run for profit companies taking over from the traditional not for profit local childcare groups.

The provision of child care has grown in response to demand.  Between 1992 and 1997 the number of child care places increased by 40.1%.  This rapid growth in demand for child care reflects changing working patterns, in particular the increasing number of women in the workforce.  Women now account for over 45% or for the total work force (1971: 37%).  In 1997 women represented 33% of people in full-time employment and 81% of those working part time. 

The most significant increase of women in employment has been concentrated among those with higher qualifications and in professional/ manager occupations, increasing from 24% in 1984 to 34% in 1997.  The growing career-focused female workforce is putting off having their first child until later in life and returning to work after giving birth much earlier.  The majority of these mothers will also go on to have more children.

The results of these changes is that an increasing number of mature, more affluent and career minded mothers are requiring good quality, flexible and convenient child care arrangements that focus as much on the needs of parents as on the child.

Despite substantial increases in the provision of childcare and the increase in value of the child care market since 1992, there still remains a shortage of places.  It is estimated that on average there are nine children under the age of eight for each available registered place.  However, demand is primarily concentrated in urban areas and close to major centres of employment.

Day nursery provision can be broadly divided into two categories: workplace provision and stand-alone.

The majority of stand alone day nurseries operate from former private houses or converted buildings and have been traditionally run by local authorities and parents, some on a charitable basis and others for profit.  However, the market is now reacting to the demands of increasingly sophisticated consumers and larger companies are setting up chains of highly serviced day nurseries.

Workplace nurseries are a new trend in the UK and remain small (circa 2% of private-sector establishments).  Tax legislation on ‘workplace’ nursery schemes has been designed to benefit both employers and employees.  However, as the implementation of these tax schemes is dependent upon each local authority, few providers have tried to facilitate them due to the setting up and ongoing administration costs.

The emerging corporate market seeks to provide quality purpose built facilities in efficient buildings that do not have the inherent physical problems of older converted properties.  These new companies include Leapfrog, Kids Unlimited, Jigsaw, Bright Horizons, BUPA Teddies and Kindercare, all have their own design and location requirements.  However, there is still an open debate as whether the best location is close to the parent’s workplace or the child’s home; ultimately it is level of convenience to parents.

 back to top