After School Clubs: Insolvency
The question
To ask the Secretary of State for Education, what assessment her Department has made of the adequacy of guidelines on (a) financial compensation and (b) protection for parents when an independent after-school provider becomes insolvent.
Answered by Stephen Morgan
As a private market, guidance published by the Insolvency Service is likely to apply, which is available at: https://www.gov.uk/government/publications/claim-money-back-from-a-bankrupt-person-or-company-in-compulsory-liquidation-guidance-for-creditors/if-an-insolvent-company-or-bankrupt-person-owes-you-money#:~:text=If%20the%20person%20or%20company,secured%20creditors.
The Childcare Act 2006 places a duty on local authorities to make sure that there are enough childcare places within its locality for working parents or for parents who are studying or training for employment, for children aged 0 to 14, or up to 18 for disabled children. In the unlikely event that a parent's childcare provider becomes insolvent or goes bankrupt, parents can contact their local authority, who can provide guidance and resources to help them transition to a new provider.
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