A new survey reveals that nursery fees in England could increase by an average of 15% due to rising national insurance contributions for employers. Nursery owners warn of potential closures and call on the government to increase funding and exempt nurseries from business rates.
A new survey found parents' nursery fees could spike as a result of employers' national insurance contributions increasing from AprilThey urged the Chancellor to reimburse nursery NIC increases on publicly-funded places and exempt them from business rates.
Michelle Levene, who owns Jolly Tots childminders in Borehamwood, Hertfordshire, faces having to cut her own salary to cover extra costs. While the funding rates that the Government pays providers for childcare places will increase, they will not account for NIC changes, the NDNA said. Rachel Wilkinson, the managing director of Green Gables Montessori Nursery in Harrogate, North Yorkshire, said the Government should allow nurseries to reclaim 20 per cent VAT on investments, and increase funding for children to ease the burden.
They now receive 30 hours free weekly childcare, but Mr Powe, who works in a contact centre, believes it’s “unfair” parents are paying more to cover employers’ national insurance charges.“The national insurance increase is going to mean other businesses are going to push on other costs elsewhere,” he said.
“If a parent comes to me and says, I want four days a week of childcare, and a parent comes to me with their 15 hours and says, I just want two days a week of childcare, I’m having to become more selective in who I choose,” he said.
Education CHILDCARE NATIONAL INSURANCE FEES NURSERY GOVERNMENT FUNDING
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