Background
The Department of Education commissioned Fortia Insight (formerly part of RSM UK Consulting LLP) to conduct an independent review of the childcare sector. The aim of this research was to inform the development of the Northern Ireland Executive Early Learning and Childcare Strategy. The review employed a mixed-method approach, including:
- A desk-based review of relevant research and secondary data
- Interviews with 40 stakeholders in the childcare sector
- A survey of childcare providers (880 responses)
- Interviews with 20 group childcare providers and 6 childminders
- A survey of parents and carers of 0–14 year olds (4751 responses)
- Five focus groups with 18 parents and carers.
We assessed the sector’s capacity, accessibility, affordability and workforce challenges.
Without targeted investment and strategic reform, the sustainability of Northern Ireland’s childcare sector – and its role in supporting families, employment and child development – remains at risk.
Our associate director, Beth Young, presented our findings to the Deputy Secretary for Education Policy and Children’s Services and the cross-departmental Task and Finish Group. The findings and conclusions informed development of the Northern Ireland Executive Early Learning and Childcare Strategy.
Challenges
The review identified several systemic and structural challenges.
- Declining provision: There was a 3% drop in registered childcare places and a 7% reduction in providers since 2020, largely due to an 11% fall in childminders.
- Workforce pressures: Recruitment and retention issues were widespread, driven by low pay, limited career progression and burdensome vetting processes. Staff vacancies rose by 165% in one year.
- Access and inclusion: Children with disabilities or special needs and those from non-English-speaking households faced significant barriers. Only 13% of providers received targeted funding to support inclusive care.
- Information gaps: 51% of parents reported insufficient information about local childcare options and financial support schemes.
Impacts
This research provided a comprehensive, evidence-based assessment of the childcare sector, which directly informed strategy development.
Key findings
- Supply and demand imbalance: While 58% of providers reported excess demand – especially for baby and toddler places – 45% had spare capacity, mostly for school-aged children. Only 14% planned to expand, citing staffing, premises and cost barriers.
- Financial fragility: Only 18% of providers were profitable in 2022 (down from 29% in 2021). Rising costs and limited awareness of financial support schemes threatened sustainability.
- Affordability: Parents spent an average of £542 per month on formal childcare, equivalent to 25% of their household income. Cost was the main barrier, identified by 56% of parents, with 77% saying they would use more childcare if it was free.
- Employment barriers: Lack of childcare prevented 49% of parents from increasing work hours and 31% from working full-time, rising to 66% among very low-income households. Women, lone parents and families with disabled children were disproportionately affected.
Recommendations
The research identified nine priority areas for improvement:
- Centralised childcare data and information for parents to improve transparency and access
- Alternative models of wrap-around care for school-aged children to address gaps in provision
- Professionalisation of the sector, including clearer career pathways and recognition
- Improved pay and working conditions to support recruitment and retention
- Access to multidisciplinary support for providers caring for children with additional needs
- Enhanced training on a wider range of disabilities and special needs
- Expansion of work-based learning to improve practical experience and reduce training barriers
- Creation of a centralised register for childcare professionals to streamline vetting and mobility
- Clearer, centralised information on financial support for both providers and parents
These recommendations aimed to address systemic weaknesses in affordability, accessibility, workforce sustainability and information provision, ultimately supporting a more equitable, resilient and high-quality childcare system.