Nursery workers being paid below the minimum wage
Analysis by the Family and Childcare Trust found that 20,000 nursery workers were a being paid below the minimum wage. At the moment nursery workers over 25 are entitled to £7.20 per hour, come April 2017 this rises to £7.50 per hour. According to the Department for Education own data, it showed that 10 per cent of nursery workers are not receiving what they should be.
22 childcare providers have had enforcement action taken against them for not paying employees the correct hourly rate.
Minimum wage rates for different age groups are:
| Up to 31 March 2017 | After 1 April 2017 | |
| Over 25s | £7.20 | £7.50 |
| 21 to 24s | £6.95 | £7.05 |
| 18 to 20s | £5.55 | £5.60 |
| Under 18s | £4.00 | £4.05 |
| Apprentices | £3.40 | £3.50 |
Further information on minimum wage entitlements: HMRC
As we all know high-quality childcare does not come cheap and come September, some childcare providers will see a reduction in the funding the government gives them. The government suggests that they are investing in childcare to help parents with the cost of childcare. However the shortfall in funding given to providers is causing worries over sustainability.
It is childcare providers responsibility to pay employees the correct minimum wage, if they fail to it could result in further action being taken.