The Charity Commission is assessing concerns after a group of parents issued a complaint to the regulator over the sudden closure of a charity-run nursery attended by their children.
Paradise Park Children's Centre in Islington, north London, has operated since 2005 as a council-funded nursery serving low-income families and up to 28 children including those with special educational needs and disabilities.
According to a group of parents, Islington Play Association (IPA), the charity contracted to run the nursery, told its 29 staff members at the nursery early last month that the site would close on 22 July.
Islington council confirmed the nursery’s closure in a now-removed public statement on 20 May, in which it said it had “reluctantly agreed to the trustees’ request to close the Paradise Park nursery provision at the end of the summer term”.
However, in its own public statement issued two days later, IPA said the suggestion to close the nursery services did not originate from the trustees and that “allegations of financial mismanagement are also unfounded”.
In a separate statement published on the same day, the 50-year-old charity said it was facing financial difficulties including “ongoing permanent staffing challenges, changes in funding and increasing operation costs”.
It said these operating costs included “significant” repairs bills, rising energy costs, changes in national insurance contributions and the London living wage as well as more expensive resources and supplies.
IPA said it planned to continue operating as a charity but had notified affected staff that their roles were at risk of redundancy through a formal consultation.
In another statement also published on 22 May, Islington council said four adventure playgrounds also currently run by IPA in the borough remain open.
Complaint lodged last month
Last month, a group of parents lodged a complaint with the regulator, alongside submitting a pre-action protocol letter to the council as a precursor to legal action being taken.
Catrin Shi, a member of the group of parents from Paradise Park nursery, said: “As parents we are extremely frustrated with the conduct of Islington Play Association, and the fact the trustees have refused to engage with parents on the circumstances surrounding this decision has only exacerbated this feeling.
“We have in writing from Islington council that IPA initially informed the council of its intention to close the nursery in December 2025, however we were only told of its closure via the council in May 2026, just two months' notice.
“All of this means we have been left with virtually no options for smooth continuation of childcare, and ultimately it is our children who are paying the price.”
Sheila Chapman, executive member for children, young people and families at Islington council, told Civil Society: “We recognise the concern this has caused for families, staff and the wider community.
“Our priority is the wellbeing of children and ensuring access to high-quality childcare.
“Islington Play Association, an independent charity, asked to end its contract early to operate the nursery, and we agreed to support an orderly transition.
“We are working directly with families to find suitable childcare throughout the summer and beyond, including support for children with SEND, and will continue providing clear information and practical support throughout.”
A commission spokesperson said: “We are assessing concerns raised with us about Islington Play Association to determine what regulatory role there is, if any, for the commission.”
Financial challenges
In the year to March 2025, IPA recorded an income of £1.37m and expenditure of £1.45m, its third consecutive operating deficit, employing 40 people overall.
The charity described a “very challenging year” in its 2024-25 accounts, in which “difficult decisions” had to be made.
It also described ongoing challenges including increased competition for funding and a higher likelihood of industrial action from its recently unionised workforce.
The charity appointed an income generation officer in March 2025 to “help support sustainability moving forward”.
IPA has been contacted for further comment.
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