CYP Now - Autumn statement: Wage increase without extra funding 'could force nurseries to close'

Childcare providers have warned that without increased funding for early years education, the national minimum wage increase proposed in Jeremy Hunt’s autumn statement will “wreak havoc” on the sector and force nurseries across the UK to close.

Experts warn that a lack of funding and increased wages could cause nursery closures. Picture: Adobe Stock

Chancellor of the Exchequer Hunt announced an increase in the National Living Wage for over-23s in his autumn statement, to support people amid the cost-of-living crisis.

The increase will see the National Living Wage rise from £9.50 to £10.42 per hour.

Hunt also announced that additional funding will be allocated to schools and social care budgets, to assist with increased costs.

However, the statement does not include any specific funding to support early years education, which has led to criticism from early years leaders.

They argue that the sector is already underfunded, and that increasing wages without any additional support from the government could result in setting closures.

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