Closure of a childcare business

What to do when closing a childcare business - group provision

Notifying the Local Authority of your intention to close:

• You will need to inform Coventry Early Year Business, Sufficiency and Funding (BSF) team by emailing EYProviderfunding@coventry.gov.uk
• An BSF Early Years’  Advisor will make contact with you and provide general advice and guidance in relation to the closure process.
• The BSF Early Years Advisor will provide advice in relation to the implications of any Capital or Revenue grant funding you previously received. You may, for example, be required to pay back or return resources provided as part of any previous grant funding you received, in line with the terms of the Grant Aid Agreement. you must also ensure you return any resources loaned to you by the Early Years Team, such as, WellComm Pack, Blast, Chatter box, FCCERS books etc.
• If you deliver funded entitlement places you must also complete a Termination of Agreement to deliver Early Education Entitlement Places form
• Your provider details will be removed from the Family Information Directory website and the Early Years records.  This excludes information relating to safeguarding incidents which must be retained by the team for a specific period.
• Please ensure that you cancel any pre-booked training through the Coventry Early Years’ Training Directory by emailing eytraining@coventry.gov.uk
• We also advice contacting the Early Years SEND team to enable them to provide additional advice and guidance in relation to any children being supported by this service.

Informing parents and carers

It is important to remain transparent throughout the closure process.

• Inform Parents/Carers as soon as possible so that they can organise alternative childcare.
• Signpost Parents/Carers to the Family Information Directory to find alternative childcare.
• If Parents/Carers require further support in finding a childcare place, they can contact a member of the Business, Sufficiency and Funding team by emailing  EYProviderfunding@coventry.gov.uk

Supporting your staff team through a closure

• The Registered Person should contact ACAS (Advisory, Conciliation and Arbitration Service) for free and impartial advice in relation to the rights and legal requirements of employers and employees.  If you employ the services of a HR company, please also contact them for advice.
• Consider how you will support team members to obtain future employment. For example: application form writing, interview techniques.  Think about how you will provide references for team members following the closure of the business.
• Signpost staff to the Coventry childcare jobs website and other recruitment organisations to support them seeking alternative employment.

Additional considerations

• If you are a registered company, you will be required to inform Companies House of the closure.
• Seek advice in relation to the requirements for the retention of records and your system for storing these.  For example, some records must be retained for a period of up to 40 years, therefore consideration should be given as to where these will be confidentially stored and to who has continued access to them throughout this time.
• Notify other providers of any resources or equipment you wish to sell.
• Stay in contact with your Local Authority Advisor throughout the process.