While the pandemic’s impact on these children’s wellbeing is the immediate concern, the ripple effects could extend much further. From parents and educators to business leaders and policymakers, everyone should be paying close attention. Children who aren’t ‘school-ready’ when they enter Reception often find themselves on the backfoot throughout their education, struggling to catch up. When applied to an entire generation, the repercussions for society and the economy could be profound. 

We have less than two decades before these now four- and five-year-olds enter the workforce. As this cohort begins formal education, early predictions are beginning to materialise, sparking concerns about their happiness, academic success, and long-term ability to thrive in adulthood. These early challenges could shape the talent pool that businesses (especially in fast-growing sectors like tech, where a skills gap already exists) will depend on. And with the UK’s economy increasingly reliant on homegrown talent post-Brexit, supporting these children now is crucial to securing tomorrow's workforce.

But we also need to recognise that ‘Generation Covid’ isn’t a blip. The issue of school readiness existed before the pandemic. Over the last 20 years, I’ve seen countless children enter Reception without knowing how to play, share, or interact appropriately. Sadly, this is not a new phenomenon. What we’re seeing now are the same problems that have always arisen when children miss out on access to high-quality early years education. But this time, it’s playing out on a national scale.

Early years settings play an enormous role in helping children begin their educational journey on the right foot. During the pandemic, children were cut off from these environments for long stretches. In theory, this latest cohort – the first pandemic babies to start school – should have had access to at least two years of Covid restriction-free childcare. But when things finally started to open up again, parents faced the harsh realities of our childcare crisis with many providers permanently closing their doors, whilst costs continued to soar. 

Accessing early years settings shouldn’t be a ‘luxury’. Yet 45% of all parents have been forced to either go into debt or dip into their savings to keep up with rising childcare costs. That means there’s a good chance that half of the parents on your team are feeling the strain of these financial pressures.

On top of that, many people are rethinking their plans for the future and deciding not to have children altogether. In London, for instance, birth rates have plummeted by 20% over the past decade. For many would-be parents, the rising cost of living, coupled with anxiety over childcare expenses, means starting a family feels like a pipedream. Statistics like these should be a wake-up call for all of us. If fewer children are born today, we face a workforce crisis tomorrow. 

Policymakers must take urgent action to reverse the worrying decline in birth rates, support Generation Covid in getting back on track, and ensure that their struggles do not become our new normal. Promising steps are being taken in the right direction, including the Education Secretary's frequent emphasis on early years as one of her main priorities, along with increased funding through new entitlements. However, to ease the crisis, the government still needs to find 40,000 additional childcare professionals within a year. This strategy must include boosting the number of childminders who provide affordable, at-home childcare that fits around the schedules of working families.

But this is not just a government problem – it’s a business one too. Businesses can lead the charge in supporting the parents and children who will form the backbone of the future economy. By offering childcare support, embracing flexible work hours, and cultivating family-friendly workplace cultures, companies can significantly lighten the load for parents juggling career and family responsibilities. 

Ignoring these challenges only exacerbates the issues at hand. Dismissing the struggles of ‘Covid babies’ as an unfortunate anomaly is not only short-sighted but also deeply irresponsible. If we fail to address the childcare crisis, we risk creating a ripple effect that could jeopardise the future workforce. We all have a responsibility to and a stake in the next generation. Investing in their future isn’t just good for people; it makes solid business sense too.

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