SCMA update on Competition and Markets Authority (CMA) Review
SCMA members will be aware that the Competition and Markets Authority (CMA) has been conducting a review into refunds and cancellations during COVID-19 covering a range of sectors including childcare providers throughout the UK.
The CMA has today (28 July 2020) decided that it will issue advice to the sector on staying within the regulations and understanding their obligations so that parents and providers get the best results, rather than taking enforcement action.
Graeme McAlister, Chief Executive of SCMA, said: “These have been very challenging times for childminders and the families they support. During lockdown the majority of settings were forced to close unless they stayed open to support the national response to COVID-19 by providing critical childcare for key workers and vulnerable children. This had severe limits on childminders’ income.
"In parallel, many parents also experienced reductions in income. Recognising the unprecedented situation, we supported members and parents with approaches to reaching voluntary agreement about contributions which could be made where appropriate. We believe that the vast majority of childcare providers acted appropriately.
“We are pleased to have had the opportunity to work with the CMA to support them to understand the issues faced by the early years and childcare sector ahead of issuing advice and guidance to providers. The CMA has taken time to listen and understand the immense pressure providers were and still are under and recognised this in the context of consumer law.
“We welcome the fact that the CMA has decided to issue advice to the sector on staying within the regulations and understanding their obligations so that parents and providers get the best results, rather than taking enforcement action. This will be helpful in the event of further recurrences of infection.
“We are now working to produce further advice for our members as well as parents on how this new guidance relates to childminding practice and will be issuing this as soon as it is ready for publication.”