State of the Sector 2025
The Out of School Alliance's State of the Sector report presents findings from our 2025 survey of wraparound and out-of-school childcare providers in England.
Drawing on responses from 76 providers operating 378 clubs and employing approximately 1,100 staff, the report reveals a sector caught in an impossible squeeze: strong demand but fragile sustainability, a committed workforce constrained by barriers to training and recognition, and a regulatory landscape that too often tilts against PVI providers.
Key findings:
The Paradox – 64% of providers report occupancy above 70%, yet only 29% are "very confident" in their financial sustainability. Nearly one in five are not confident at all, and 12% anticipate reducing capacity or closing. In any healthy market, this level of demand should signal a thriving sector. It doesn't. The problem lies in rising delivery costs that cannot be passed to families already stretched by the cost of living.
The Threat from Schools – More than half of providers (55%) report being impacted by schools taking provision in-house, often without consultation or impact assessment. Schools can establish wraparound provision without notifying the local authority or registering with Ofsted - meaning local authorities and government are flying blind when it comes to planning and market sustainability.
Workforce: Committed but Constrained – Staff retention is strong (53% report 90%+ retention) and nearly 40% have team members with 15+ years' service. Yet 58% have at least one vacancy, and training is blocked by cost, lack of relevant provision, and the inability to release staff from ratio without funded backfill. 84% of providers support a national training framework for the sector.
Local Authorities: A Mixed Picture – Nearly half of providers (49%) say their local authority does not actively manage the local childcare market. Confidence in LA support is polarised, with 32% rating it poorly. The report calls for LAs to be empowered as genuine market stewards with a statutory role in overseeing changes to local provision.
Our Call to Action
The report makes the case for a National School-Aged Childcare Strategy built on four pillars: a clear vision that recognises school-aged childcare as essential infrastructure; a comprehensive workforce plan with funded qualifications and backfill; targeted funding reform including rent caps and extended food sponsorship schemes; and regulatory reform to create a level playing field with mandatory consultation before changes to local provision.
Download the report
You can download a copy of the full report here:
State of the Sector 2025 - full report
Impact of coronavirus on OSCs
The Out of School Alliance conducted a survey of its members and other providers of wraparound care (before, after-school and holiday clubs) during the second and third weeks of May 2020. The aim was to discover how out of school clubs (OSCs) were faring in the face of the coronavirus epidemic, and in particular how the shutting down of schools and childcare settings had affected them.
The survey found that wraparound settings have been hit very hard by the enforced shut down, with 82% being currently closed. Of even more concern is the lack of clarity about when these settings will be able to return to normal, with school attendance being severely restricted up to the end of term, and doubt about what restrictions will still be in place come September. 44% of respondents to the survey said that they were unsure whether they would be able to re-open in September, and 10% thought they were very unlikely to re-open. There is real concern that without the injection of some form of additional funding, perhaps in the form of a sustainability grant, many more wraparound settings will be forced out of business, leaving a large gap in the number of available childcare places which are relied on by working parents.
Unlike other forms of childcare, wraparound settings have not received any targeted government support, and many of them are ineligible for the types of general support available to other small businesses. In particular the fact that most settings rent their premises in 'shared space' such as schools or community buildings, meant that they are ineligible for the SBRR (small business rates relief grant) that has been such a lifeline to other small businesses.
The provision of childcare for school-aged children has been continually overlooked by the Department for Education in the provision of guidance to schools and childcare settings during the coronavirus shutdown. Providers have been left unsure about what they are expected or permitted to do, and are largely dependent on whatever decisions have been made by the headteacher of their local school. This has led to a huge variation in how settings have operated during shutdown, and how they are expected to operate during the gradual re-opening of schools from 1 June.
Download the survey report
You can download a copy of the full survey report here:
Impact of coronavirus on out of school clubs