Nurseries are facing concerns of the rise of the living wage
Nursery Owners are facing the difficulties of working out how to deal with the rise of the National Living Wage. From April 2016 the National Living wage for employees aged 25 and above will rise to £7.20 per hour. Many nurseries are concerned that this may cause financial difficulties and the only option they may have is to increase nursery fees. However many nurseries increased fees in September and to increase again in April may cause unhappy parents which may lead to them sourcing childcare elsewhere.
In order for nurseries to become sustainable fees may have to increase between 4 to 6 percent. For staff working in the early years sector the rise of the National Living Wage may be seen as a good thing, however for nursery owners this may not be the case as the shortfall in funding for free nursery places is why nursery nurses are paid lower than other care and teaching professionals
For many nurseries increasing fees may not be the option as they have already increased fees in keeping with their annual fee increase. Therefore many nursery owners are being left with the worrying decision of what to do.