Cost-Saving Tips for Early Years Settings
- Sally Gridley
- Feb 12
- 3 min read
Running an early years setting has never been cheap, but rising energy bills, staffing pressures and supply costs mean many providers are having to be smarter than ever with their budgets. The good news? There are lots of small, practical changes that can add up to meaningful savings—without impacting quality or children’s experiences.
Below are realistic, tried-and-tested cost-saving ideas for early years settings. I’m sure many of you are already doing most of these as I know times are tough, but there might just be a nugget that you haven’t thought of.
1. Audit Before You Cut
Before reducing anything, take time to understand where money is actually going.
Quick wins:
Review the last terms spending
Highlight regular costs that have crept up quietly
Check for subscriptions, memberships or services no longer used
Compare supplier invoices line by line
Even a short audit often reveals easy savings. Use my new Cost- Saving Checklist and Termly Budget Review to help.
2. Be Strategic With Staffing
Staffing is your biggest cost, so small efficiencies matter.
Practical tips:
Match staff rotas closely to occupancy patterns
Avoid over-staffing during quieter sessions
Use annualised hours where appropriate
Review bank and agency usage regularly
Invest in staff retention – recruitment is far more expensive than keeping good staff
Well-planned rotas save money and reduce staff stress.
3. Reduce Energy Costs (Without Freezing Everyone!)
Energy bills can drain budgets quickly.
Simple actions:
Switch lights off zone-by-zone, not building-wide
Use timers on heaters and water boilers
Keep doors closed and draughts sealed
Replace bulbs with LEDs
Teach children to be “energy helpers”. For example encourage them to turn off electrical devices to reduce charging frequency, turn off lights when they leave bathrooms, etc
If possible, review your energy tariff annually—many settings stay on expensive default rates. Use comparison sites to see where you can save.
4. Rethink Consumables
Small items add up fast.
Ways to cut back:
Buy nappies, wipes and paper in bulk
Use washable cloths instead of disposable wipes where suitable
Control access to resources like glue, paper towels and tissues
Introduce refill stations for paint and glue
Review how often resources are replaced rather than reused
Less waste = less spend.
You could try a "wish list" of consumables. Print off a list of everything you buy regularly and ask parents to purchase something from the list each term.
5. Get Creative With Resources
We know children don’t need expensive toys to learn.
Cost-effective alternatives:
Loose parts (cardboard tubes, bottle tops, fabric scraps)
Donations from families and local businesses
Charity shops for books and dressing-up clothes
Natural resources like stones, sticks and leaves
Resource sharing with nearby settings
Often, children engage more with open-ended, low-cost materials.
6. Review Food Costs
Food budgets are under huge pressure.
Practical savings:
Plan menus weekly to reduce waste
Track what children actually eat (not just what’s served)
Cook from scratch where possible
Buy frozen fruit and vegetables
Compare suppliers regularly
Reduce portion waste rather than portion size
Ask parents for fruit and vegetable donations
Good planning can save hundreds over a year.
7. Shop Smarter
Loyalty doesn’t always pay.
Tips:
Compare at least two suppliers for major purchases
Use early years buying schemes or cooperatives
Ask suppliers for discounts—many will offer them
Order less frequently to reduce delivery charges
Keep a central ordering system to avoid duplicates
8. Make the Most of Funding & Support
Don’t leave money unclaimed.
Check that:
Funding claims are accurate and timely
You’re claiming all eligible hours
SEN inclusion funding is explored where appropriate
Local authority grants or sustainability funds are monitored
Business rate relief or exemptions are applied where eligible
A missed claim is money lost forever.
9. Maintain to Avoid Big Repairs
If you own your own building preventative maintenance saves in the long run.
Examples:
Fix small leaks before they become major damage
Service boilers and appliances regularly
Address wear and tear early
Keep outdoor equipment well maintained
Emergency repairs cost far more than planned upkeep.
10. Involve the Whole Team
Cost-saving works best when everyone is involved.
How to do this:
Share budget goals with staff
Encourage ideas from the team
Celebrate savings achieved
Explain why changes are needed
When staff understand the bigger picture, they’re more mindful day-to-day.
Final Thought
Cost-saving doesn’t mean cutting corners. It means being intentional, organised and proactive with spending.
Small changes, made consistently, can protect your setting’s financial health—while keeping quality, staff wellbeing and children’s experiences at the heart of everything you do.
Need help with your business planning? Register your interest for my Knowing Your Numbers workshop.
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