Nursery Business Sustainability

Explore the two significant financial pressures alongside rising utility bills and our guidance below.

National Minimum Wage and National Living Wage for nurseries

From next April the National Living Wage will rise to £11.44 per hour from £10.42, a rise over more than £1 and the largest ever cash increase to the minimum wage.

The current rate of £10.42 applies to workers over 23, but the Chancellor has announced that the rate will also apply to 21 and 22-year-olds.

See NMW for nurseries guidance

Business Rates Relief for nurseries

Together with members, NDNA has successfully argued, in both Scotland and Wales, that business rates were unfair on nurseries which should be made special cases. 

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 are campaigning 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. 

Business Rates Relief for nurseries