Childcare providers, including nurseries, are warning that they may be forced to raise fees or face closure as National Insurance increases hit the early years sector hard.
A growing crisis in the early years sector could leave parents facing higher nursery fees or fewer childcare options. Childcare providers across England are warning that rising National Insurance contributions and an increase in the national living wage are creating unsustainable financial pressures, pushing many nurseries to the brink of closure.reveals the stark reality for nurseries, preschools, and childminders.
An increase in the national living wage: From April 2024, wages for staff aged 21 and over will increase by 6.7%, rising to £12.21 an hour. Some nurseries are already passing on the costs. Others are scaling back their services, such as limiting government-funded hours or introducing charges for meals, consumables, and trips.Despite the Government’s expansion of funded childcare hours, which promises 30 hours a week for working parents by September 2025, many providers argue that the funding rates do not cover the actual costs of delivering care.
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