Rachel Reeves blamed as nurseries to roll out huge | European Markets

Mother and father are set to bear the brunt of a 10 % increase in nursery charges, following Rachel Reeves’s tax hikes on employers, in response to a new survey. The Nationwide Day Nurseries Affiliation (NDNA) warns that folks may wrestle to secure a place for his or her little one, with one in seven nursery firms at risk.

Purnima Tanuku, chief government of NDNA, described the survey outcomes, primarily based on responses from more than 700 nurseries, as “alarming”. She highlighted the “awful situation” nurseries face, having to “increase their fees to parents or face an uncertain future”.

A staggering 96 % of these surveyed stated they might hike charges by an average of 10 %. In the meantime, staffing prices are anticipated to rise by 15 % from April due to the price range modifications.

This has led to 17 % of respondents predicting a internet loss and 14 % admitting their company is at risk. Regardless of the federal government’s elevated funding for childcare locations, it falls short of protecting the national insurance coverage quantity, leaving dad and mom to “pick up the shortfall”, warns the NDNA.

Ms Tanuku added: “The alarming results of this survey come just months before the biggest phase of the government’s funded childcare expansion, putting this policy at risk. Nurseries do not want to be in this awful situation where they are forced to either significantly increase their fees to parents or face an uncertain future, with 14 per cent of nurseries saying their business is at risk.”

She warned: “High quality comes at a cost and unfortunately the government appears to be unwilling to pay that price. Instead, we are left with a situation where they are increasing statutory employment costs, which impact hugely on nurseries because staffing makes up 75 percent of their expenditure – but not taking these increases into consideration when paying for childcare places.

“From September, the federal government shall be paying for 80 % of childcare locations in England. Merely put, if the sector’s most vital buyer shouldn’t be paying their honest share, nurseries have to seek out this money from some place else or close their doorways.”

From September, eligible working parents can get up to 30 hours of free childcare per week for children aged nine months and older. However, the cost of a nursery place varies depending on the age of the child, the region, and whether full or part-time care is required.

Meanwhile, working parents with children aged between 9 and 23-months-old on 31st August 2024, could apply to receive 15 hours childcare.

According to DayNurseries.co.uk: “The average value of a part-time (25 hours a week) nursery place for a little one underneath two in England is £159.61 a week (£8,299.72 a 12 months for 52 weeks). The average value of a part-time nursery place for a two 12 months outdated is £153.69 a week (£7,991.88 a 12 months.)”

They added: “The average value of a full-time (50 hours a week) nursery place for a little one underneath two in England is £305.11 a week. For a two-year-old little one, a full-time nursery place is £290.77 a week (£15,120.04 a 12 months).”