Take nurseries out of unfunded NIC increases – sign the petition
With National Insurance Contribution (NIC) changes about to hit underfunded nurseries and increase the cost of childcare, NDNA is fully supporting a new petition to exempt childcare settings.
This was launched by NDNA’s Nottinghamshire network chair Karen Richards in December but has taken months to go through the Petitions Committee’s clearance process.
According to NDNA’s own analysis, the NICs increases along with statutory minimum wage rises from April will add an additional £2,600 per employee in England and Wales and £2,200 per employee for Scottish nurseries.
Karen Richards of Wolds Childcare who launched the petition said: “I have initiated this petition to urge the UK government to exempt private day nurseries from the new National Insurance charges. Nurseries play a vital role in supporting families, the economy, and early childhood development.
“However, these additional costs place immense financial pressure on already struggling providers, risking closures and reduced childcare availability. Exempting private nurseries, in line with school-based early years provisions will protect this essential sector, ensuring affordable childcare for families and allowing nurseries to continue delivering high-quality early years education.”
NDNA’s CEO Purnima Tanuku CBE said: “Early education and childcare providers are facing a perfect storm at the moment. From historic underfunding to a raft of rising costs from April, including the changes to NICs which could see an average nursery having to find an extra £40,000 to cover staffing increases.
“Parents and childcare providers alike are worried about the impact of these changes with 92% of parents believing nurseries should be exempt from NICs in the same way schools are. At the same time our latest research found that 96% of providers believed parent fees would have to increase as a result of the NIC changes.
“This petition is a chance to send a clear message about the importance of our crucial sector and the need to think differently about how we support the people delivering high-quality early learning opportunities for our youngest children.
“Childcare and early education are critical in shaping children’s life chances and the foundation of our economy, allowing families to return to work. If the Government is committed to giving children the best start in life and growing the economy then something has to change in their early years policy.
“Ministers must fully fund providers for places they want them to deliver for children and families and stop placing additional burdens on the sector, leaving nurseries and parents to pick up the pieces.”
NDNA surveyed providers in January and February about their sustainability and the impact of NIC changes on nurseries. When askd about the impact of NICs on nurseries:
- 96% said they would have to increase fees to parents
- 69% would reduce spending on nursery resources
- 48% would reduce spending on nursery premises
- 39% would have to offer fewer places
Pregnant Then Screwed surveyed 3,847 parents who currently have a child in a UK early education and care setting. The survey found that:
- Nine in 10 parents feel stressed about potential cost increases
- 92% believe that early years providers should be exempt from NIC increases, as schools are
- 59% said that a rise in early years fees would lead to parents reducing their hours or leaving work altogether
The deadline for signing the petition is 26 September 2025.
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