For nursery settings in all UK nations, the rise in national insurance contributions (NICs) and staffing costs will drastically impact their setting, putting them under huge financial pressure.
Childcare in the UK is underfunded
The continuous underfunding of the early years sector cannot go on. The Government must put our children at the heart of their agenda and decision-making.
Find out more about how underfunded childcare will lead to:
- higher parent fees
- fewer childcare places
- more nurseries closing.
Download our resources and share them on your social media channels and websites. Use our MP and parent letter templates to voice your concerns. Together, we will advocate for better outcomes for nurseries, families and children.
Higher parent fees
The shortfall in government funding puts unbearable financial pressure on settings and will force these costs on to parents. This is important because most nurseries now deliver more Government-funded hours than parent-paid hours. From September the Government will be buying 80% of all childcare in England.
The sector will be paying on average 11% more in wages/staffing costs from April, or around £2000-£2500 per staff member. This is also important because staffing costs make up around 75% of the average nursery’s overall delivery costs.
We need support from all Governments to close the rising gap between funding and costs and we need it now before it’s too late for settings, our children and parents.
Fewer nursery places
Higher employer costs mean that nurseries are more likely to freeze staff recruitment, be less able to offer pay differentials to better qualified staff and offer fewer incentives for staff to stay employed. Fewer staff members means nurseries can’t provide the number of places required to meet demand.
Despite all the financial and workforce challenges early years providers face, they are delivering high quality early education and care, supporting families and their children. This must be recognised and supported.
Nurseries closing
The combination of all these factors will be the last straw for some nurseries which will result in more settings closing rather than expanding to meet expected demand. All three Governments must act urgently to exempt all private and voluntary early years providers from paying the National Insurance Contribution increases. Schools and maintained nurseries will be reimbursed but not private and voluntary providers, which deliver three quarters of childcare places in England and a significant proportion in Wales and Scotland. Nurseries in Scotland and Wales are exempt from paying business rates but private and voluntary nurseries in England are still required to pay this unfair tax. There must be equity across all types of providers.
We need more support from Government to help reduce the gap between staffing costs and funding rates.
Contact your MP and parents
Use our MP and parent letter templates to voice your concerns and fight for better outcomes for nurseries, families and children.
Parents and carers can learn more about the value of early childhood education and care with our parent resources here.
Download and share our campaign
Download our campaign imagery and share these on your social media channels to shout loud about why it’s crucial changes are made for nurseries.
- You could use the email banner in your email signature and link to our page
- Why not upload the graphics to social media and share why it’s important nurseries are adequately funded?
- You can share the infographics on your nursery management system with parents and carers.
Download and share our posters
Download our campaign posters and display them on your parent board or entrance to shout loud about why it’s crucial changes are made for nurseries.