Nurseries face closure as owners slash wages in desperate attempt to stay afloat

Nurseries face closure as owners slash wages in desperate attempt to stay afloat



Posted by theipaper

16 comments

  1. [Nurseries ](https://inews.co.uk/topic/nurseries?srsltid=AfmBOoqn8B1yWSOGJbx6e4ce0JOx1L5EO8ZWrGVZxPYXfjq3avYL-Nf4&ico=in-line_link)fear increases in [national insurance](https://inews.co.uk/topic/national-insurance?srsltid=AfmBOop27dT4i3nWA9aP22jdY5tQcdpOGYUwM63-iFWb9LFdwTgfimee&ico=in-line_link) and [wages ](https://inews.co.uk/topic/wages?srsltid=AfmBOoqf8SIOdggDsPhVDNRMBcXCVqZ0WPVZu_Oai37PjXdktq6XQdEi&ico=in-line_link)will force them to close with owners slashing their own salaries to stay afloat.

    It comes as a new survey found[ parents’ nursery fees](https://inews.co.uk/news/parents-nursery-fee-hikes-20-per-cent-reeves-nic-increase-3382832?srsltid=AfmBOorek9jEmcFE5d4DxvTBdJreMFISrLmo3xfOumPfAN5hlAGCDqRB&ico=in-line_link) could spike by an average of 10 per cent as a result of [employers’ national insurance contributions (NIC) increasing from April](https://inews.co.uk/inews-lifestyle/money/wages-stall-jobs-ni-rise-treasurys-watchdog-3352874?srsltid=AfmBOooh9DifuNfrF0qcCmk4XpLKvx-7EsQYWJvRavofrtgpkYjtYLRo&ico=in-line_link).

    The National Day Nurseries Association (NDNA) says one in seven nurseries and the Government’s flagship [childcare ](https://inews.co.uk/topic/childcare?ico=in-line_link)expansion are at risk.

    They urged the Chancellor to reimburse nursery NIC increases on publicly-funded places and exempt them from business rates.

    More than half of 700 nursery businesses in England surveyed blamed NIC increases for an average 15 per cent increase in staffing costs, a figure the Department for Education disputes.

    Owners are now urging the Government to increase funding as they face going out of business over what some branded a stealth tax.

    Michelle Levene, who owns Jolly Tots childminders in Borehamwood, Hertfordshire, faces having to cut her own salary to cover extra costs.

    “We can’t put our fees up at all. Any kind of impact, whether it’s national insurance or minimum wage that is going up will impact our profits,” she said.

    “Hiking up our national insurer and our minimum wage as well. I think I’m going to be about £1,500 a month worse off, and that will be coming out of my personal salary.

    “It’s a massive worry. We really don’t know we’re going to survive this. It’s just not sustainable. We’re going to see loads of people going out of business again.”

    While the funding rates that the Government pays providers for childcare places will increase, they will not account for NIC changes, the NDNA said.

    Funding rates are due to rise by an average 4 per cent, but two-fifths of nursery businesses surveyed by the NDNA didn’t know their new rates, with 96 per cent saying they’ll have to increase fees.

    As well as NIC, the National Living Wage and Minimum Wage will also increase from April.

  2. Fixing the foundations of the economy by burning off growth, great work

  3. Business owners really don’t want to pay the extra NI, do they? To the point they’ll even say your children are under threat.

    I’m sure some of them are treading water, and are worried this’ll put them under… But I’d be curious to know how many are genuinely like that, vs. how many are trying to safeguard their profits rather than keep their business afloat.

  4. Jesus the average cost of nursery fees is 300 a week

  6. Hopefully brings more work for us childminders I was registered in August and haven’t been able to get one customer yet. Most people opt for nurseries not realising the child can get more attention at a small home from home setting.

  8. 4 days a week and our monthly bill is £1250. They are gouging the parents but the free childcare amount they get from the government is killing them anyway.

  9. Seems over-regulated to me.

    In other countries, childcare can be a stay-at-home mothers side job. So one mother might look after 3 pre-schoolers during the day, and then several older kids in the afternoon for parents who have to work later hours.

    This instantly makes the cost of childcare MUCH cheaper. It’s the parents responsibility to decide who they trust with their children.

  10. Someone in the equation, somewhere, has a Range Rover. Find them, find the problem.

    Must be nice to run a business that’s a necessity and then get to just rinse the taxpayer. Literally any taxes levied on you can be passed on. It won’t stop because we’re not ready for vast numbers of people to return to childcare rather than work. Absolute Gordian Knot

  12. The problem, as always, will be the owner taking a fat post cheque. Nursery workers are paid piss all and the fees are huge. There is a demand for the service, it can and will be run better. This is largely just the mewling of the business owning class.

  14. Perhaps child care shouldn’t be privatised? It doesn’t seem very profitable for the owners however the societal benefit is larger. 

  15. Our nursery fees went up 16%.

    Our old nursery now… not worth working anymore.

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