Nurseries have said they may be forced to close if funding isn't increased, while many others are having to raise prices
Nurseries and early years providers have warned they may not be able to provide ‘free’ childcare places next year without more government funding. ‘Free’ childcare hours, are now known as government-funded childcare hours. The hours are available to working parents to help them return to work and support them with the cost of childcare.
But the government is in the process of expanding the scheme. By September 2025, parents of children from nine months up will be able to claim 30 hours funded childcare. Nurseries will be forced to close In the Budget, Chancellor Rachel Reeves announced a rise in the national minimum wage. She also announced a rise in National Insurance contributions for employers. This means nurseries will need to pay more money for staffing.Nurseries in deprived areas have said they will be forced to close or cancel plans to expand without more funding. And others have said they are raising fees for non-funded hours by as much as 20%.
Neil Leitch, chief executive of the Early Years Alliance, told The I Paper that most nurseries are having to put up prices. This means they will charge more for hours that aren’t covered by the government’s programme. And parents who need more than 30 hours of childcare a week will be out of pocket.But he’s warned that even putting up costs might not be enough to cover the rise in National Insurance costs. This means that some nurseries will be forced to close.
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