Explore the three significant financial pressures alongside rising utility bills and our guidance below.
School-based nurseries
As part of the Government’s plan to create more places to meet demand for funded childcare, schools can apply for grant funding to create new nurseries or expand existing nurseries. This must not displace or threaten the sustainability of existing provision. If you have concerns about demand in your local area, take a look at our support below.
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National Minimum Wage and National Living Wage for nurseries
The Labour Government wants to bring in the NLW for all adults but will do this incrementally – so the National Minimum Wage for adults aged 18 to 20 years old will be increased from £8.60 to £10 from April 2025, an increase of 16%. There’s an 18% hike for apprentices and those aged 16 and 17 from £6.40 to £7.55 from April 2025.
See NMW for nurseries guidance
Business Rates Relief for nurseries
Since April 2018 in Scotland, and April 2019 in Wales, nurseries have been exempt from paying rates. In March 2020 NDNA secured a Government u-turn that meant nurseries were included in the business rates holiday for retail and leisure businesses. This was extended into 2021/22 with a 66% reduction from July 2021 to March 2022. However, under current plans, nurseries will not be receiving any discount from full business rates.
We continue to campaign for nurseries in England to receive the same recognition. We believe that business rates are an unfair tax created for factories, shops, and warehouses and are based on space. It is this space that unfairly penalises nursery businesses, who have to offer good-sized rooms including outdoor areas for their children to play in, grow, explore and develop.
Nurseries should not end up paying more for the environment they provide children, and should not be discouraged from investment by fear of higher rates.
Resources for nurseries:
View our main business rates pages for England and Scotland and Wales.
