Parents face nursery fee increases next year as government funding for childcare will be wiped out by tax rises and higher wages, The i Paper has been told.
Early -years leaders have said that some nurseries will be forced to shut down, as they described the funding boost as “inadequate”.
The Government on Monday outlined a £2bn uplift to early years investment compared with 2023 to support the expansion of 30 hours of state-funded childcare from next September.
Funding rates to local authorities have risen by an average of 4.1 per cent for three and four-year-olds, 3.3 per cent for two-year-olds and 3.4 per cent for children under two.
But providers have warned this will not be enough to cover a shortfall of funds they face due to increases to employer national insurance contributions (NICs) and minimum wage outlined by Rachel Reeves in October’s Budget.
National insurance payments for employers will jump from 13.8 per cent to 15 per cent in April, and the secondary earnings threshold – the level at which employers start making NICs – will be reduced from £9,100 to £5,000.
The Department for Education (DfE) told the National Day Nurseries Association the funding factored in minimum wage increases, inflation and average earnings growth, but not increased NICs.
The Treasury will reimburse schools and maintained nurseries for NICs but this will not include private or voluntary providers, which deliver about three-quarters of funded childcare places.
Absolutely fucking predatory behaviour from nurseries robbing bastards they’re
Wtf does this govt pay for…..besides illegal immigrants and donations to other countries!!!
I can believe it. Already since the new funded hours were rolled out earlier this year our bill has risen sharply. In fact, due to the fees going up (which was the same month as my son getting 15hrs of funding a week) our bill was actually more expensive than prior to him getting those ‘free’ hours. When our daughter started at the same nursery in 2019 we paid £40 a day, now it’s £70 a day.
We went for a childminder for this very reason. The council pays something like £6.50 a hour which is a pounder than my childminder… the nursery’s are just taking the money and charging more
So for my area the government currently pays £5.62 an hour per child. 1 person can have 8 children if they are 4 years old. That’s £44.96 an hour. Living wage is £11.44 an hour.
This only covers 38 weeks of the year and my understanding was nurseries are not allowed to charge a top up but can charge during non term time.
That’s £33.52 left an hour to cover the rest of costs such as food, taxes like NI, business rates, utilities and I guess potentially rent.
It’s actually not as a good a business model as it sounds when you take into account everything else such as only being able to have 1:5 ratio for 5 year olds and under 2 being even less whilst the amount paid by the government doesn’t scale as well.
I can’t help but think if the government added another £2 a hr the nursery would just put the price up £2 a hr. So less demand means the price will come down (supply/demand).
I’m kinda confused how the government got into the position of subsidising this in the first place, I guess out of trying to buy the votes of women?
Unless we make it possible for industry of every type to make money and expand and grow and all the rest, then the economy will continue to wither. This will be the outcome from hating and despising capitalism. It is the only way to deliver the money needed to pay for this type of thing. Even if you took every penny you could from the relatively few rich people left in the country, tax everyone to the hilt, it won’t get any better. Short-termism kills us.
Nursery’s aren’t free?
All these price hikes yet the gov is just throwing taxpayer money left right and centre to all kinds of countries and illegal migrants.
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Parents face nursery fee increases next year as government funding for childcare will be wiped out by tax rises and higher wages, The i Paper has been told.
Early -years leaders have said that some nurseries will be forced to shut down, as they described the funding boost as “inadequate”.
The Government on Monday outlined a £2bn uplift to early years investment compared with 2023 to support the expansion of 30 hours of state-funded childcare from next September.
Funding rates to local authorities have risen by an average of 4.1 per cent for three and four-year-olds, 3.3 per cent for two-year-olds and 3.4 per cent for children under two.
But providers have warned this will not be enough to cover a shortfall of funds they face due to increases to employer national insurance contributions (NICs) and minimum wage outlined by Rachel Reeves in October’s Budget.
National insurance payments for employers will jump from 13.8 per cent to 15 per cent in April, and the secondary earnings threshold – the level at which employers start making NICs – will be reduced from £9,100 to £5,000.
The Department for Education (DfE) told the National Day Nurseries Association the funding factored in minimum wage increases, inflation and average earnings growth, but not increased NICs.
The Treasury will reimburse schools and maintained nurseries for NICs but this will not include private or voluntary providers, which deliver about three-quarters of funded childcare places.
Read more here: [https://inews.co.uk/news/parents-nursery-fee-hikes-next-year-government-funding-inadequate-3423484](https://inews.co.uk/news/parents-nursery-fee-hikes-next-year-government-funding-inadequate-3423484)
Absolutely fucking predatory behaviour from nurseries robbing bastards they’re
Wtf does this govt pay for…..besides illegal immigrants and donations to other countries!!!
I can believe it. Already since the new funded hours were rolled out earlier this year our bill has risen sharply. In fact, due to the fees going up (which was the same month as my son getting 15hrs of funding a week) our bill was actually more expensive than prior to him getting those ‘free’ hours. When our daughter started at the same nursery in 2019 we paid £40 a day, now it’s £70 a day.
We went for a childminder for this very reason. The council pays something like £6.50 a hour which is a pounder than my childminder… the nursery’s are just taking the money and charging more
So for my area the government currently pays £5.62 an hour per child. 1 person can have 8 children if they are 4 years old. That’s £44.96 an hour. Living wage is £11.44 an hour.
This only covers 38 weeks of the year and my understanding was nurseries are not allowed to charge a top up but can charge during non term time.
That’s £33.52 left an hour to cover the rest of costs such as food, taxes like NI, business rates, utilities and I guess potentially rent.
It’s actually not as a good a business model as it sounds when you take into account everything else such as only being able to have 1:5 ratio for 5 year olds and under 2 being even less whilst the amount paid by the government doesn’t scale as well.
I can’t help but think if the government added another £2 a hr the nursery would just put the price up £2 a hr. So less demand means the price will come down (supply/demand).
I’m kinda confused how the government got into the position of subsidising this in the first place, I guess out of trying to buy the votes of women?
Unless we make it possible for industry of every type to make money and expand and grow and all the rest, then the economy will continue to wither. This will be the outcome from hating and despising capitalism. It is the only way to deliver the money needed to pay for this type of thing. Even if you took every penny you could from the relatively few rich people left in the country, tax everyone to the hilt, it won’t get any better. Short-termism kills us.
Nursery’s aren’t free?
All these price hikes yet the gov is just throwing taxpayer money left right and centre to all kinds of countries and illegal migrants.
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