Living wage introduced on 1st April means rise in fees for childcare providers
The rise in the National Living Wage will mean many childcare providers will not be able to pay staff costs unless they raise childcare fees. The National Living Wage has increased to £7.20 an hour for employees 25 or over.
Neil Leitch, of the Pre School Learning Alliance, said, ‘We fully support the principle of the “National Living Wage”. That said, the reason that the early years sector has historically been a “low-pay sector” is because it has also historically been significantly underfunded by Government. The vast majority of childcare providers would love to be able to pay their staff a higher wage, but simply cannot afford to do so at current funding levels.’
Many childcare providers will have no other choice but to raise childcare fees by 5 per cent this year. It has been said that the rise in the National Living Wage will increase a settings payroll by an estimated 10 per cent.
Not only are childcare setting going to have to put up childcare fees but they potentially may lose qualified practitioners. Many qualified employees are disgusted that those who are 25 and over and less qualified are are being paid more than those that are higher qualified, many people are asking the question where’s the incentive for higher qualified staff?
We would like to hear how this is going to affect your childcare business?
I totally agree I have a level 3 in child care and education and work as a childminder, I look after my 3 grandchildren , two are eligible for 15 hours funding, I can’t claim this? But they take up my spaces and stop me earning. In childminding we are always penalised and it has seemed to be considered by many as not a proper job. They need to do it and see all the unpaid hours we do!!! Planning, preparation, writing observations and assessments etc. The list goes on…..
I am a childminder, after expenses I earn less than the minimum wage quite substantially, I do this job so I do not have to send my baby to a nursery. I’m an early years teacher, I used to manage a nursery but have always believed babies and toddlers should be in a home environment. Not a sterile nursery being cared for by teenagers! Which is why I didn’t return to work.
Ratio is 1-3 I have to include my daughter in ratio…. when my child turns three and is able to receive funding, I can’t claim it but can for other children in my care… it’s pushing me to send my child to nursery to free up the space I can get paid/funding for, and that’s exactly what I do not want to do.
It’s all wrong!!
Childcare practitioners need more recognition through their pay!
Please someone listen…. we have the most important job going, these children are the future, if you don’t get it right in the early years (the foundation of life Years) then full potentials can not be met.
It seems like a lot of nurseries are going to really struggled if the government do not do something fast.
As a small family business, our Private Day Nursery already looses the equivalent of a mangers wages in the shortfall of Grant Funding on what we would be taking from paying places. Teamed with the National Living Wage and new pensions-the government is potentially loosing fantastic childcare provisions due to putting them out of business.
This isn’t even going into staffing problems left for those settings able to deal with the financial issues.
It’s a dark time for childcare settings 🙁
I couldn’t agree any more. Parents will lose out on good nurseries but the sad thing is they will only realise when it’s too late. Very dark times for nurseries.